Stock Market: Sensex Skids 311 Points, Nifty Ends Below 17,850 On Volatility. Banks Top Drag

Stock update: On the 30-share Sensex platform, HDFC, Maruti, Kotak Bank, ICICI Bank, SBI, Reliance, HDFC Bank, Axis Bank were the top laggards, falling in the range of 1 per cent to 1.4 per cent

In the broader market, the S&P BSE MidCap and SmallCap indices outperformed the benchmarks as they fell 0.12 per cent and 0.16 per cent, respectively.

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The two key equity benchmarks, Sensex and Nifty, on Monday closed in the red amid volatility, with banking and financial services stocks taking a plunge in the second half of the trading session.

The S&P BSE Sensex index declined 311 points to end at 60,692. On the other hand, the Nifty50 index gave up 17,850-mark to close at 17,845, down 100 points.

On the 30-share Sensex platform, HDFC, Maruti, Kotak Bank, ICICI Bank, SBI, Reliance, HDFC Bank, Axis Bank were the top laggards, falling in the range of 1 per cent to 1.4 per cent. On the flip side, Ultratech Cement, TechM, Power Grid, Infosys, Tata Motors emerged winners.

Cipla shares dipped 7 per cent to Rs 956.20 on the BSE in Monday's intra-day trade after the company said that the United States Food and Drug Administration (USFDA) issued Form 483 with 8 observations after the inspection of its Pithampur manufacturing facilities.

In the broader market, the S&P BSE MidCap and SmallCap indices outperformed the benchmarks as they fell 0.12 per cent and 0.16 per cent, respectively.

Among sectoral indices, the Nifty PSU Bank index fell over 1 per cent, followed by the Nifty Bank, Financial Services, Private Bank, and Realty indices dipped 0.9 per cent each. The Nifty IT index, on the other hand, gained 0.54 per cent.

In the previous session on Friday, the S&P BSE Sensex closed at 61,003, down 317 points. On the other hand, the Nifty 50 registered a low at 17,885, before settling 92 points lower at 17,944.

"Stocks are getting beaten ahead of the release of Fed minutes on Wednesday. Maintaining its guard against inflation, the Fed is expected to remain hawkish. As expected, it is unlikely to have a dire effect on the global stock market. However, the consequence of constant high interest rates is causing a slowdown in demand and the earnings outlook, hence the near-term trend will be cautious," said Vinod Nair, Head of Research at Geojit Financial Services.

In Asian markets, Japan, South Korea, Hong Kong, and China ended in the positive territory. European markets were trading lower. The US markets had ended on a mixed note on Friday.

Meanwhile, the rupee appreciated by 10 paise to close at 82.72 (provisional) against the US dollar on Monday, as the American currency retreated from its elevated levels. Forex traders said a muted trend in domestic equities and foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.

At the interbank foreign exchange market, the local unit opened at 82.69 against the American currency and finally settled at 82.72 (provisional) against the greenback, registering a gain of 10 paise over its previous close of 82.82. During the trading session, the rupee touched a high of 82.62 and a low of 82.74 against the dollar.

Global oil benchmark Brent crude futures advanced 1.05 per cent to $83.87 per barrel.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 624.61 crore, according to exchange data.