Closing Bell: Broad-based selling sends Sensex, Nifty to two-month lows

Indian equity benchmarks ended sharply lower on Monday, extending their losing streak to a second consecutive session as broad-based selling pressure pushed both the Sensex and Nifty to their lowest levels in nearly two months.The Sensex fell 719 points to close at 73,524, while the Nifty declined 244 points to settle at 23,123, slipping below the 23,150 mark. The sell-off was widespread, with 24 of the 30 Sensex constituents ending in the red and 40 Nifty stocks closing lower. Market breadth remained firmly negative, with the NSE advance-decline ratio standing at nearly 1:3.

Heavyweight stocks including Reliance Industries, ICICI Bank, Mahindra & Mahindra and Larsen & Toubro were among the key drags on the benchmark indices.
The weakness was visible across sectors, although Nifty CPSE and Healthcare indices managed to buck the trend and close in positive territory. Nifty Metal emerged as the worst-performing sectoral index, weighed down by stocks such as SAIL and National Aluminium Company (NALCO), with the latter falling around 4%.
Downstream oil marketing companies also came under pressure after Brent crude prices climbed towards the $97-per-barrel mark. Shares of Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation declined by as much as 4% amid concerns over the impact of higher crude prices on marketing margins.The Nifty Bank index fell 433 points to 54,064, while the Midcap index declined 849 points to 59,906. Broader markets underperformed the frontline indices, reflecting a clear shift towards risk aversion among investors.

Among individual stocks, Wipro, Jio Financial Services, Eternal and Shriram Finance featured among the top losers on the Nifty. In the broader market, Muthoot Finance tumbled more than 6%, while Kalyan Jewellers fell around 5% as a decline in gold and silver prices weighed on sentiment towards precious metal-linked counters.

Information technology shares also remained under pressure, with the Nifty IT index ending lower for a fourth straight session. Tata Consultancy Services was among the notable laggards, declining around 2%.

The sharp decline across sectors, coupled with weakness in heavyweight stocks and elevated crude oil prices, kept investors on the sidelines and reinforced the cautious mood prevailing in the market.