Indian shares fell on Monday after a two-week rally, dragged down by declines across banking and financial shares.

Share Market Live

NSE

The Sensex ended 155 points lower at 38,667, while the broader Nifty50 index lost 38 points to end the day at 11,474. In broader markets, the Nifty Midcap and the Nifty Smallcap indices fell around 1.5 percent each.

Bharti Airtel, HCL Tech, ITC, Infosys, and TCS were the top gainers on Sensex, while Yes Bank, IndusInd Bank, SBI, ICICI Bank, and Sun Pharma led the losses.

All sectoral indices, except the IT and FMCG, ended in red for the day. All banking and financial indices ended between 2-3.5 percent lower, while Nifty IT rose 2 percent.

Nifty PSU Bank fell the most, down 3.5 percent, while Nifty Bank and Nifty Private Bank fell around 2.6 percent. Meanwhile, BSE Bankex also shed 2.5 percent.

Lakshmi Vilas Bank shares hit a 5 percent lower circuit after the Reserve Bank of India placed the lender under prompt corrective action. The bank’s directors are also being investigated by Indian police after a customer accused them of misappropriating funds.

Indiabulls Housing Finance slumped over 34 percent, its biggest one-day drop in over one year as investors remained concerned over its merger with Lakshmi Vilas Bank.

Yes Bank shares tanked around 15 percent on Monday, hitting its near 10-year low of Rs 41.50 per share despite the lender receiving the Reserve Bank of India's (RBI) nod to raise capital.

Reliance Capital fell nearly 13 percent to over 2-decade low after group Chairman Anil Ambani said that the company will exit the lending business. "As part of the transformation process, Reliance Capital will no longer be in the lending businesses and they are working closely with lenders to finalise to resolution plan. The plan expected to be completed in the next few months by December 2019," said Anil Ambani at the company’s annual general meeting.

Globally, world shares largely shrugged off reports that Washington is considering delisting Chinese companies from US stock exchanges, with market players downplaying the likelihood of such radical escalation of the US-China trade war. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped just 0.1 percent.