Stock Market Update: Nifty slips below 17,200, Sensex down 500 points; bank, IT, auto stocks drag

The Indian markets declined nearly 1% after making a positive start on Monday as Russia-Ukraine tension drove oil price higher after it dropped below $100 per barrel last week. Markets made a strong comeback last week from recent lows, but crude prices have risen back to $110 a barrel to fan fears of even higher inflation, Mayuresh Joshi, head of equity research at William O`Neil & Co, told news agency PTI. 

After adding more than 4% last week, Nifty50 slipped below 17,200, while the Sensex dropped over 500 points as the benchmark indices traded at 17,141.10 and 57,300.34 respectively on Monday at 1 pm.  

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The 12-share Nifty Bank too slipped below 36,000-mark as the index fell by nearly 500 points in the afternoon trade. 

Nifty midcap gained 0.10% and small cap declined 0.30% as profit taking hit the market.  

Sectorally, Metal, Healthcare and Pharma saw buying interest, while banking, financial services, IT and auto stocks declined the most.  

Coal India, Hindalco, Tata Steel, ONGC, Maruti, Sun Pharma, Titan, Wipro and HDFC Bank were among top gainers. Britanni, Tata Consumer, SBI Life, Ultratech Cement, Grasim, IndusInd Bank, Power Grid and State Bank of India were top laggards.  

"Fears of exhaustion setting in were put aside last week, as we were keen on seeing 17500 first. Having bid time, oscillators look less excited now, and a foray into the 17500 region early today, or inability to float above 17300 could usher in weakness, that seek as far as 17160 or 16960 for support," said Anand James - Chief Market Strategist at Geojit Financial Services, on Nifty outlook.