Indian equity indices, the S&P BSE Sensex and NSE Nifty50, extended last week's losses and edged lower in early trading on Monday amid continued selling by overseas investors following disappointing corporate earnings.

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NSE

Weak global cues also weighed on the sentiment. Asian stocks inched lower as the street's expectations of an aggressive Federal Reserve stance on rate cuts faded while continued tensions in the Persian Gulf following an Iranian seizure of a British tanker lifted crude oil prices.

At 9.37 am, the benchmark Sensex dropped over 391 points, or 1.02 percent, to trade at 37,946. The 30-share BSE index opened at the day's high of 38,333.52. The broader Nifty was holding 11,300 mark, trading at 11,314, down by 0.92 percent, or by 105 points. The 50-share NSE index opened at 11,393.

The broader markets fell more sharply with both the Nifty and BSE MidCap indexes down well over 1 percent. Barring Nifty Metal, all major sectoral gauges were trading in the red with BSE Realty, BSE Finance, Bankex and Nifty Finance among the worst-performing sectors.

Among Nifty gainers, Vedanta, Tata Motors, Yes Bank, Sun Pharma and Bharti Infratel rose by up to 3.3 percent.

Bajaj Finserv, Bajaj Finance, HDFC, BPCL and HDFC Bank were the top Nifty losers, falling between 2 and 3.5 percent.

HDFC Bank

shares declined 2.6 percent in trade on Monday despite the private sector lender's first-quarter results meeting street expectations.

Amara Raja Batteries' stock prices rose more than 4 percent in the early trade after the company posted robust numbers in the quarter ended June 2019.

DHFL, GSK Pharma, Kotak Mahindra Bank, Oriental Bank of Commerce, TVS Motor, United Spirits, ICICI Securities and Just Dial are among some major companies declaring their April-June quarter results later in the day.

Kotak Mahindra Bank is expected to report its June-quarter financial results on Monday and the street is anticipating the highest profit growth in last nine quarters. Analysts believe sustaining the net interest margin (NIM) above 4.2 percent will be positive for the stock. In the last quarter, it was at 4.48 percent, perhaps a 16 quarter hike on NIMs.

Meanwhile, the Indian rupee opened lower by 10 paise at 68.90 per dollar against Friday's close 68.80.

Foreign institutional investors (FIIs) sold shares worth Rs 950 crore on a net basis in the cash market, while domestic institutional investors (DIIs) bought shares worth Rs 734 crore on July 19.

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