Sensex, Nifty resume losing run; banking, auto shares top losers 

The Indian market resumed its losing run on Monday amid weak global cues. Sensex and Nifty closed over 1 per cent lower on continued foreign fund outflows. Sensex tumbled 638.11 points or 1.11 per cent to end at 56,788.81. During the day, it crashed 743.52 points to 56,683.40. Nifty fell 207 points or 1.21 per cent to close at 16,887.35. Maruti, Hindustan Unilever, IndusInd Bank, ITC, Bajaj Finance, State Bank of India and Kotak Mahindra Bank were the top Sensex losers, falling up to 3.16 per cent. Dr Reddy's, NTPC, Bharti Airtel and Wipro were the only gainers, rising up to 1.99 per cent.

Vinod Nair, Head of Research at Geojit Financial Services said, "Global markets are expected to stay under pressure due to the confluence of an unfavourable economic outlook and investor risk aversion. Global markets were in pain as economic data forecast to shed lower as indicated by high-frequency indicators in European regions like UK PMI is consequently down below 50 showing contraction in economy. As demand slowed, India's manufacturing PMI declined slightly to 55.1 in September. As a result, all the key sectors were pressured by selling, except pharma & oil stocks."

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Today's losses come after a single-day pause post seven sessions of continuous losses for the Indian market.

On Friday, Sensex and Nifty closed higher after RBI announced a 50 bps hike in repo rate. Sensex jumped 1,016.96 points or 1.80 per cent to end at 57,426.92. Nifty climbed 276.25 points or 1.64 per cent to close at 17,094.35.

Meanwhile, banking, auto and consumer durable shares were the top sectoral losers today, with their BSE indices falling 748 points, 616 points and 668 points, respectively.

Mid cap and small cap indices on BSE declined 308 points and 352 points, respectively.

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Nagaraj Shetti, Technical Research Analyst, HDFC Securities said,"After showing a sharp upside bounce from the lows on Friday, Nifty witnessed reversal on the downside on Friday and closed the day lower by 207 points. After opening on a flat note, the market failed to sustain the opening ground and started with weakness from early part. Intraday upside bounce of mid part has eventually resulted in a sell on rise opportunity and Nifty closed near the lows. A long bear candle was formed on the daily chart, that has engulfed more than half way mark of previous long bull candle of Friday. Technically, this pattern indicates a lack of strength to sustain the upside bounce in the market and the crucial lower support of 16750-16800 levels could be tested again. This is negative indication. Hence, a decisive slide below 17,750 levels is likely to negate the bullish pattern created on Friday's upmove and that could eventually result in further strengthening of downside momentum in the market."

Market breadth was negative with 1,431 stocks ending higher against 2,120 stocks falling on BSE. 153 shares were unchanged.

Market cap of BSE-listed firms fell to Rs 2.68 lakh crore.

Foreign institutional investors sold shares worth Rs 1,565.31 crore on Friday, according to data available with NSE.

Global markets 

Elsewhere in Asia, markets in Hong Kong settled lower, while Tokyo ended higher. Stock exchanges in Europe were trading lower in mid-session deals after oil prices rose by more than $3 per barrel amid dire warnings over energy shortages in Europe. The US markets ended in negative territory on Friday. Meanwhile, the international oil benchmark Brent crude futures jumped 3.90 per cent to $88.46 per barrel.