The benchmark BSE Sensex ended the session down by nearly 300 points, breaking a 2-day gaining spree, due to fall in heavyweighs like Adani Ports, Coal India, L&T and RIL.

According to brokers, disappointing macroeconomic data and muted earnings as well as caution ahead of CPI inflation data to be released later in the day hit the market sentiment.

A weak rupee, which depreciated by 35 paise to 65.51 against the dollar, on fears that the tax rate decision of the GST Council will have a revenue implication of Rs 20,000 crore annually, too dampened the investor sentiment.

The 30-share BSE index Sensex ended lower by 281 points or 0.84 per cent at 33,033.56 and the 50-share NSE index Nifty fell 96.8 points or 0.94 per cent to 10,224.95. The Sensex touched the day's high of 33,417.30 and a low of 32,999.98.

Among BSE sectoral indices, metal index fell the most by 1.84 per cent, followed by consumer durables 1.76 per cent, capital goods 1.55 per cent and realty 1.5 per cent. Only IT index was up 0.18 per cent.

Top five Sensex gainers were TCS (+2.06%), M&M (+1.27%), Sun Pharma (+0.99%), PowerGrid (+0.24%) and Kotak Bank (+0.24%), while the major losers were Adani Ports (-4.11%), ONGC (-3.41%), Coal India (-3.00%), HDFC (-2.15%) and L&T (-1.87%).

Oil remained well supported as ongoing output cuts led by the Organization of the Petroleum Exporting Countries and Russia contributed to a significant reduction in excess supplies and as tensions in the Middle East raised the prospects of supply disruptions.

“Rising crude is weighing on the market and has become a major concern,” said K K Mittal, Vice President at Venus India Asset Finance.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth Rs 529.22 crore last Friday, as per provisional data released by stock exchanges. Domestic institutional investors (DIIs) bought shares worth Rs 1,920.87 crore.

IIP data

The post-GST re-stocking momentum seen in August 2017 does not seem to have sustained in the subsequent month, going by the latest IIP growth print of 3.8 per cent for September. This is substantially lower than the now revised August IIP growth of 4.5 per cent, as against 4.3 per cent provided at the quick estimate stage in mid-October.

Asian shares stepped back in cautious early trade on Monday as investors look to see whether US Republicans can hammer a tax reform deal quickly, while the British pound fell on growing doubts over Prime Minister Theresa May’s leadership.

MSCI’s broadest index of Asia–Pacific shares outside Japan dipped 0.15 per cent while Tokyo’s benchmark Nikkei dropped 0.7 per cent.

By Friday's close on Wall Street, the S&P 500 index had snapped an eight-week winning streak as investors took profits after US Senate Republicans had unveiled a new tax plan that differed from the House of Representatives' version.

(With inputs from agencies)

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