Stock Market Today: Sensex Falls 523 Points; Nifty Tests 21,600. PSU Banks Top Drag, IT Gains

Stock update: On the 30-share Sensex platform, Tata Steel, NTPC, SBI, IndusInd Bank, ITC, Kotak Bank emerged in the red. Wipro, HCLTech, M&M, Infosys, TechM, Nestle India emerged prime gainers

The two key equity benchmarks, Sensex and Nifty, on Monday closed lower amid profit booking by investors. The S&P BSE Sensex declined 523 points to settle at 71,072. On the other hand, the NSE Nifty50 ended at 21,616, down 166 points.

On the 30-share Sensex platform, Tata Steel, NTPC, SBI, IndusInd Bank, ITC, Kotak Bank emerged in the red. On the flip side, Wipro, HCLTech, M&M, Infosys, TechM, Nestle India emerged prime gainers.

In the broader markets, the BSE Midcap index dropped 2.6 per cent while the BSE Smallcap fell 3.16 per cent.

Sectorally, IT and Pharma indices gained 0.76 per cent and 0.28 per cent, respectively, while all other indices, led by Nifty PSU Bank, Realty, Media, and Metal indices plunged 4.5 per cent.

On the IPO front, Apeejay Surrendra Park Hotels made a good stock market debut on Monday, listing at a premium of 21 per cent versus its issue price of Rs 155.

In the previous session on Friday, the S&P BSE Sensex gained 167 points to end at 71,595, while the NSE Nifty50 closed at 21,783, up 65 points.

"An uptick in exchange margin requirements caused a decrease in positions, primarily in mid and small caps. Aside from the pharma and IT sectors, selling was widespread, with notable struggles seen in PSU banks," Vinod Nair, Head of Research, Geojit Financial Services said.

In Asia, Tokyo's Nikkei 225 closed 0.9 per cent higher and China's Shanghai Composite went up 1.28 per cent. Hong Kong's Hang Seng fell 0.83 per cent. European markets were trading on a mixed note with CAC 40 of France and DAX of Germany rising, while London's FTSE 100 trading with losses.

Global oil benchmark Brent crude declined 0.50 per cent to $81.78 a barrel on Monday.

Foreign Institutional Investors (FIIs) purchased shares worth Rs 141.95 crore on Friday, according to exchange data.

Meanwhile, India rupee rose 7 paise to close at 83 (provisional) against the US dollar on Monday, on softness in the US currency and easing crude oil prices. However, weak domestic markets and foreign fund outflows capped sharp gains, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.01 against the greenback. The unit hit an intra-day high of 82.98 and a low of 83.02. The local unit finally settled at 83 (provisional) against the dollar, higher by 7 paise from its previous close of 83.07.