Losses in IT, financials drag Sensex 251 pts lower; Nifty below 17,800

Ahead of domestic retail inflation data due later in the day and US inflation data due tomorrow, Indian equity markets ended in the red on Monday. Selling pressure was seen across all sectors.

The 30-share BSE benchmark Sensex declined 251 points or 0.41% to settle at 60,432. The broader NSE Nifty dropped 93 points or 0.52% to end at 17,763.

In the Sensex pack, , , , and closed lower and fell about 1.5-3%. , , , , , and M&M also closed in the red.

On the flip side, , L&T, , , , and ended with gains.

Sectorally, Nifty PSU Bank fell 2.52%, and Nifty IT declined 1.88%. Nifty Bank and Nifty Metal also closed lower. In the broader market, Nifty Midcap50 dropped 1.62% and Smallcap50 plunged 1.15%.

"With the third quarter earnings season coming to a close this week, markets traded weak throughout the day ahead of the inflation print expected today. PSU Banks & IT stocks dragged Indices as traders booked profits on a rather dull day of trade wherein most of the sectoral indices ended in the red," S Ranganathan, Head of Research at LKP Securities, said.

Meanwhile, the market capitalisation of all listed companies on BSE declined by Rs 2.51 lakh crore to Rs 265.68 lakh crore.

Global Markets
Global shares steadied ahead of the US inflation data that could define the outlook for global interest rates.

In Europe, shares rose, led by gains in industrial and defence stocks, pushing the STOXX 600 up 0.3%. The index fell almost 1% last week. US stock index futures rose between 0.1-0.2%.

Japan's benchmark Nikkei 225 fell 0.9% to 27,427. South Korea's Kospi declined 0.7% to 2,452. Hong Kong's Hang Seng shed 0.12% to 21,164, while the Shanghai Composite was up 0.72% at 3,284.

Crude Impact
Oil prices eased over 1% on Monday after rising in the previous session, as investors focused on short-term demand concerns stemming from crucial upcoming US inflation data and refinery maintenance in Asia and the United States.

Brent crude futures fell 1.3%, to $85.27 a barrel, after a 2.2% gain on Friday. US West Texas Intermediate crude was at $78.63 a barrel, down 1.35%, after rising 2.1% in the previous session.

Currency Watch
The Indian rupee weakened 0.26% vs the US dollar and was quoted at 82.73 per dollar on concerns over rising US yields but avoided falling below a level considered critical by market participants.

(With inputs from agencies)