Indian shares ended lower on Monday with Nifty50 slipping below 11,100 level for the first time since March 2019. The benchmark indices were mainly dragged by banking, metal and auto indices.
Global shares eased as markets counted down to a likely cut in US interest rates this week, with much riding on whether the Federal Reserve signals yet more are to come.
The Sensex ended 289 points lower at 37,397, while the broader Nifty50 index lost 104 points to end at 11,085. In broader markets, the Nifty Midcap fell 2 percent and Nifty Smallcap index tanked 2.7 percent.
Bharti Airtel, TCS, HCL Tech, Wipro and HDFC Bank were top gainers on the Nifty50, while YES Bank, IndusInd Bank, Indiabulls Housing, Hero Moto Corp and SBI led the losses.
All sectoral indices, except Nifty IT, ended lower for the day. The Nifty PSU Bank index fell the most, down 5 percent, followed by Metal, down 3.3 percent. Nifty Auto declined 1.8 percent, while, Nifty Media fell 2.2 percent for the day. Nifty Bank and Nifty Pvt Bank also lost around 1.8 percent each. Meanwhile, Nifty IT rose 0.8 percent for the day.
Banks were under pressure dragged by RBL Bank, YES Bank, IndusInd Bank, Bank of Baroda, and SBI, down in the range of 4.5-12 percent.
Coffee Day Enterprises hit a 20 percent lower circuit after its founder VG Siddhartha reportedly went missing from last evening. In a letter reportedly written by Siddhartha to the board, which was accessed by CNN-News18, the businessman said that he had failed to create the right profitable business model despite taking best efforts.
Bharti Airtel gained 4 percent after Bank of America Merrill Lynch (BofAML) upgraded its rating to 'buy' from 'neutral' despite intense competition in the sector from Reliance Jio. It also raised the stock's target price to Rs 400 per share from Rs 360 earlier.
Indiabulls Housing fell 6.5 percent after a media report said that in a letter to Prime Minister Narendra Modi, BJP leader Subramanian Swamy had accused the group of embezzling Rs 1 lakh crore.
Strides Pharma gained nearly 6 percent after the company announced that it has entered into a joint venture with Sun Moral International, a wholly owned subsidiary of China's Sihuan Pharmaceutical Holdings Group.
Globally, Japan's Nikkei rose 0.4 percent, showing limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3 percent and Hong Kong's Hang Seng edged up 0.2 percent.