Domestic benchmark indices ended lower on Monday as rising crude oil prices and renewed geopolitical tensions around the Strait of Hormuz heightened concerns over inflation, corporate costs and global interest rates.
The Nifty 50 declined 0.50 per cent to close at 23,779.15, while the BSE Sensex fell 362.62 points, or 0.50 per cent, to 76,132.81.
Brent crude climbed above USD 97 a barrel, while WTI traded above USD 92 amid renewed US-Iran military tensions and concerns over oil supplies and shipping through the Strait of Hormuz. Brent touched around USD 97.60 a barrel, its highest level in seven weeks, raising concerns over higher energy costs, inflation and corporate input costs in India.
IT stocks were among the major losers, with the Nifty IT index falling around 2 per cent after stronger US employment data boosted expectations of tighter monetary policy. US nonfarm payrolls rose by 162,000 in August, above market expectations, while unemployment stood at 4.1 per cent, pushing market-implied odds of a September Federal Reserve rate hike to around 59-60 per cent.
Gold prices also weakened amid higher rate expectations, with spot gold slipping nearly 1 per cent to around USD 4,398.62 an ounce, while MCX gold traded marginally lower at Rs 1,52,427.
