Sensex Extends Losses For Second Day; Nifty Ends Below 24,650

Indian shares ended slightly lower on Monday as heightened geopolitical tensions in the Middle East offset bets of a Federal Reserve rate cut later this month.

Also helping cap the downside, China’s top leaders have pledged to loosen monetary policy and provide more support for the slowing economy.

In geopolitical news, the anti-government rebels on Sunday announced full control of Homs, the third main city in the nation, and the capital Damascus after Syrian President Bashar al-Assad fled the country, ending a fifty-year regime.

Russian media reported that the ousted President had been granted asylum in Moscow on humanitarian grounds.

The focus also shifted to U.S. consumer price inflation (CPI) data, due out later this week that could influence the future interest rate trajectory and foreign inflows into emerging markets such as India.

The benchmark S&P BSE Sensex dropped 200.66 points, or 0.25 percent, to 81,508.46, extending losses for a second day running.

The broader NSE Nifty index closed at 24,619, down 58.80 points, or 0.24 percent, from its previous close.

FMCG stocks led losses, with Nestle India, Hindustan Unilever and Tata Consumer Products falling 2-4 percent after Godrej Consumer Products warned of a challenging demand environment and external pressures affecting its key business segments. Shares of the latter plummeted nearly 9 percent.

Tata Motors and Asian Paints both fell around 2 percent while Larsen & Toubro rallied 2.3 percent and Wipro climbed 2.7 percent.