The market saw massive selloff and negative prices for 160 symbol tickers (out of a total of 323) in one hour after the opening of the session, later rising to 300 symbols.
The downturn for equal-weighted index was even deeper at 2,855, or 3.08%, hitting a historic level, according to Donyaye Bourse website.
It has been seen in recent times that the bourse is more inclined toward emotional behavior and haste by novice investors in unusually big numbers, Financial Tribune reported.
With negative climate looming large in the market, the newcomers tend to distance from trade and rush to sell.
The role and impact of cautionary behavior is plain and visible in the value of trade.
The value of trade conducted by retail investors hit the lowest since September 3 - at 12.67 trillion rials ($111.7 million)- raising concern that the trend may lead to liquidity outflow.
Market Performance
The main index of Tehran Stock Exchange TEDPIX lost 6,319.30 points, or 1.94%, on Monday to end trading at 319,871.5.
About 2.74 billion shares valued at 12.67 trillion rials ($111.7 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Esfahan Oil Refining Company was the biggest winner as its shares went up 10.55% to 5,734 rials per share.
Hamadan Glass Company incurred the biggest loss among all TSE-listed companies and went down 6.12% to 8,585 rials per share.
MAPNA Group contributed the most to the benchmark's fall, followed by Telecommunication Company of Iran, Mines and Metals Development Investment Company and Chadormalu Mining and Industrial Company.
Esfahan Oil Refining Company gave the biggest boost to the benchmark index, followed by Tabriz Oil Refining Company, Persian Gulf Petrochemical Industries Company and Bandar Abbas Oil Refining Company.
IFX down 2.49%
Iran Fara Bourse main index IFX lost 103.82 points or 2.49% to close Monday trade at 4,057.98.
About 1.27 billion securities valued at 9.74 trillion rials ($85.86 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 155.91 million of its shares valued at 312.22 billion rials ($2.75 million) were traded.
Zagros Petrochemical Company, Esfahan Steel Company, Middle East Mines and Mineral Industries Development Holding Company and Hormozgan Steel Company had the most negative impact on IFX.
Goharzamin Iron Ore Company gave the biggest boost to IFX, followed by Daroupakhsh Distribution Company, Taliseh Nemooneh Dairy Farm and General Mechanic Company.