Benchmark indices fell on Monday, giving up early gains after snapping an eight-week losing streak in the previous session, as rising crude oil prices, higher bond yields and continued foreign fund outflows weighed on sentiment.
The BSE Sensex fell 547.65 points, or 0.76%, to close at 71,924.68, while the NSE Nifty 50 declined 157.10 points, or 0.70%, to settle at 22,363.35. The decline came after Friday's rally lifted the indices into positive territory for the week ended October 9 for the first time in nine weeks.
Brent crude rose 1.14% to $105.8 per barrel. Higher oil prices are a concern for India as they can push up the import bill and inflation. Rising government bond yields have added to the pressure on equities.
Foreign institutional investors (FIIs) sold shares worth ₹3,568.90 crore on Friday, according to exchange data.
ITC, Tech Mahindra among top losers
ITC, Tech Mahindra, Hindustan Unilever, Larsen & Toubro, State Bank of India and Tata Consultancy Services were among the major Sensex losers. Bharat Electronics, Mahindra & Mahindra, Kotak Mahindra Bank and HCL Technologies ended higher.
In Asian markets, South Korea's Kospi fell 3.65%, while Shanghai's SSE Composite also closed lower. Hong Kong's Hang Seng ended marginally higher. European markets were trading in the green.
“Indian equities came under sharp selling pressure on Monday, with the Sensex falling over 1,200 points from its intraday high and the Nifty slipping below 22,350, erasing early gains after Friday's recovery,” said Vikram Kasat, chief business officer – Advisory and Dealing at PL Capital.
Rising 10-year government bond yields, FII outflows, tensions in the Middle East and weak global cues had weighed on sentiment, he added. Media, auto, realty and metal stocks held up relatively well, while PSU banks, IT, FMCG and private banks remained under pressure.