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Indian Equities Fall as Selling in Financials, Autos Weigh on Sentiment

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Indian benchmark indices closed sharply lower on Monday as selling pressure in financial and automobile stocks weighed on sentiment.

The BSE Sensex fell 508.40 points, or 0.7%, to close at 74,267.34, while the NSE Nifty 50 declined 165.15 points, or also 0.7%, to settle at 23,382.60.

Market sentiment remained under pressure amid weak global cues and continued foreign portfolio investor outflows. Elevated crude oil prices and the absence of a breakthrough in the Middle East conflict also kept investors cautious.

On the economic front, India's manufacturing sector expanded at a faster pace in May. The HSBC India Manufacturing Purchasing Managers' Index rose to 55.0 from 54.7 in April, supported by stronger growth in output, new orders, and purchasing activity.

Among corporate developments, Mahindra & Mahindra (NSE:M&M, BOM:500520) reported a 20% year-on-year increase in total vehicle sales for May to 99,636 units. Passenger vehicle sales rose 11% to 58,021 units, while exports climbed 37% to 5,000 units.

Bajaj Auto (NSE:BAJAJ-AUTO, BOM:532977) said total sales increased 20% year on year to 461,257 units in May. Domestic sales rose 10% to 248,031 units, while exports advanced 34% to 213,226 units.

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