<p id="thickbox_headline">Indian shares recorded their worst session in two weeks on Monday, dragged by private-sector lenders and consumer stocks, while a slew of strong earnings from state-controlled banks helped limit more losses.</p>.<p>The blue-chip NSE Nifty 50 index fell 1.73% to 17,213.60, while the S&P BSE Sensex dropped 1.75% to 57,621.19. Both indexes fell for a third straight session.</p>.<p>Economists polled by <em>Reuters </em>expect RBI on Thursday to hold its repo rate steady but increase its reverse repo rate as part of a process to reduce surplus liquidity poured into markets earlier in the pandemic.</p>.<p>The market is factoring in the upcoming monetary announcement and increasing crude oil prices, said Rahul Sharma, head of research, Equity99 Advisors.</p>.<p>"The bank Nifty is witnessing selling pressure due to high inflation expectations. If the interest rate hike comes in, then people will withdraw the liquid funds from every risky asset."</p>.<p>In Mumbai trading, private-sector lender HDFC Bank, heavyweight shadow lender Bajaj Finance and Tata Consumer Products were the Nifty's top drags, falling more than 3% each.</p>.<p>The Nifty PSU Bank index, which tracks state-owned lenders, surged as much as 4.7% to its highest since July 2019.</p>.<p>State Bank of India, India's largest lender, rose as much as 3.5% after reporting stronger-than-expected earnings. Smaller peer Bank of Baroda jumped nearly 10% after its quarterly profit more than doubled.</p>.<p>Analysts said continued foreign investment outflows due to expectations of a surge in US interest rates were also weighing on the market.</p>.<p>Foreigner investors have sold Indian equity worth $4.94 billion this year as of Friday's close, compared with $3.62 billion worth of net buying in the same period last year, Refinitiv data showed.</p>.<p>India's bond and forex markets were shut due to a public holiday in the state of Maharashtra. </p>.<p><strong>Watch the latest DH videos:</strong></p>
<p id="thickbox_headline">Indian shares recorded their worst session in two weeks on Monday, dragged by private-sector lenders and consumer stocks, while a slew of strong earnings from state-controlled banks helped limit more losses.</p>.<p>The blue-chip NSE Nifty 50 index fell 1.73% to 17,213.60, while the S&P BSE Sensex dropped 1.75% to 57,621.19. Both indexes fell for a third straight session.</p>.<p>Economists polled by <em>Reuters </em>expect RBI on Thursday to hold its repo rate steady but increase its reverse repo rate as part of a process to reduce surplus liquidity poured into markets earlier in the pandemic.</p>.<p>The market is factoring in the upcoming monetary announcement and increasing crude oil prices, said Rahul Sharma, head of research, Equity99 Advisors.</p>.<p>"The bank Nifty is witnessing selling pressure due to high inflation expectations. If the interest rate hike comes in, then people will withdraw the liquid funds from every risky asset."</p>.<p>In Mumbai trading, private-sector lender HDFC Bank, heavyweight shadow lender Bajaj Finance and Tata Consumer Products were the Nifty's top drags, falling more than 3% each.</p>.<p>The Nifty PSU Bank index, which tracks state-owned lenders, surged as much as 4.7% to its highest since July 2019.</p>.<p>State Bank of India, India's largest lender, rose as much as 3.5% after reporting stronger-than-expected earnings. Smaller peer Bank of Baroda jumped nearly 10% after its quarterly profit more than doubled.</p>.<p>Analysts said continued foreign investment outflows due to expectations of a surge in US interest rates were also weighing on the market.</p>.<p>Foreigner investors have sold Indian equity worth $4.94 billion this year as of Friday's close, compared with $3.62 billion worth of net buying in the same period last year, Refinitiv data showed.</p>.<p>India's bond and forex markets were shut due to a public holiday in the state of Maharashtra. </p>.<p><strong>Watch the latest DH videos:</strong></p>