The benchmark share indices ended over 1.6 per cent down on Monday, amid weak global cues, weighed down by selling in bank shares after an RBI panel proposed strict norms for loan restructuring. The Sensex slipped 281 points or 1.6 per cent to close at 16,877 and the 50-share Nifty plunged 87 points or 1.7 per cent to close at 5,118 levels.
The Asian markets closed lower on continued fears regarding Greece and Spain. Nikkei slipped nearly 2 per cent or 161 points to 8,508, Hang Seng plunged 3 per cent or 587 points to close at 19,053 and the Shanghai Composite dipped 1.3 per cent to 2,141 levels.
Back home, Maruti Suzuki was the top loser among the Sensex stocks, down 5.5 per cent to end at Rs 1,081 after the country's largest car maker declared a lockout at its Manesar plant, which accounts for about 40 per cent of its total capacity. It has ruled out restarting production until a probe is completed into rioting that led to the death of a manager.
Metal stocks such as Tata Steel, Jindal Steel Hindalco, Jindal Steel and Sterlite Industriels edged lower by 4-5 per cent each on concerns of a dip in demand from China. LMEX, a gauge of six metals traded on the London Metal Exchange (LME) fell over 2 per cent on Friday. On the domestic front, the iron ore export slumped to multi-year low in April-June.
BHEL, GAIL, Tata Motors, Bharti Airtel, ICICI Bank, Bajaj Auto, State Bank of India, Wipro, Tata Power, HDFC Bank Coal India and Sun Pharma also closed weaker by 1.5-4 per cent each in trades on Monday.
Infosys ended down 1.4 per cent on profit booking at higher levels after recent gains last week. FMCG major ITC ended down 1.3 per cent ahead of its first quarter earnings during the week.
Larsen and Toubro ended down 1.1 per cent. The engineering major reported 300 bps decline in EBITDA (earnings before interest, taxes, depreciation and amortization) margins to 9.09 per cent for the quarter ended June 2012, against 12.11
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