The Sensex lost nearly 483 points on selling in IT, capital goods and banking stocks.
The benchmark stock index started the week on a muted note on Monday with the Sensex falling nearly 483 points on sell-off in IT, capital goods and banking stocks amid losses in global equities.
The Sensex closed at 58,964.57, down 482.61 points or 0.81 per cent. It closed 552.78 points or 0.92 per cent lower at 58,894.40 during the day.
The 50-point Nifty closed 109.40 points, or 0.62 per cent, lower at 17,674.95 as 29 of its shares fell.
Larsen & Toubro, HCL Technologies, Infosys, Wipro, Asian Paints, HDFC, HDFC Bank, Axis Bank were the major losers from the Sensex pack.
Conversely, ICICI Bank, NTPC, Kotak Mahindra Bank, TCS and UltraTech Cement were among the gainers. TCS is scheduled to announce its financial results later in the day.
“Markets remain cautious ahead of the ECB meeting, the release of US inflation data and the start of the domestic fourth quarter earnings season,” said Vinod Nair, Head of Research, Geojit Financial Services.
Global stock markets were also down on inflation concerns, expectations of aggressive rate hikes by the US Federal Reserve and weak growth due to geopolitical conditions.
US Fed officials have indicated they are considering raising the benchmark rate to twice the normal amount in upcoming meetings.
They also indicated they could reduce the Fed’s bond holdings, which could raise commercial lending rates.
In Asia, markets in Hong Kong, Seoul, Shanghai and Tokyo ended lower. European stock markets were also trading with a fall due to selling in technical stocks. Shares in the US closed mostly lower on Friday.
International oil benchmark Brent crude fell 2.38 per cent to $100.3 per barrel. Foreign institutional investors continued selling shares worth Rs 575.04 crore on Friday, according to exchange data.