Benchmark stock indices slumped on Monday, extending losses for seventh straight session and touching a new multi-month low.

The Sensex dropped 241.30 points (0.31%) to close at 77,339.01, while the Nifty declined 78.90 points (0.34%) to settle at 23,453.80.

Among sectoral indices, Nifty IT, media, and oil & gas saw the most losses, while metal, PSU banks, and realty emerged as top performers, according to NSE data.

“Consolidation continued in the market; a slowdown in earnings growth and a weak rupee due to inflation impacted the sentiment. IT stocks reacted negatively today due to a reduced expectation of a FED rate cut in December, which may pose a delay in spending in the BFSI segment,” said Vinod Nair, Head of Research, Geojit Financial Services.

The persistent decline in the indices can be attributed to several factors, including weak Q2 earnings, sustained foreign fund outflows, and rising domestic inflation in both retail and wholesale sectors.

“We are of the view that, the current market texture is weak but oversold hence; we could expect one quick pullback rally from the current levels,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Ajit Mishra, SVP Research, Religare Broking advised investors should maintain a cautious outlook and focus on stock-specific opportunities.

(ANI)