The Sensex gave up early gains to end lower by 266 points as market heavyweight Infosys Ltd extended losses for a second session following Vishal Sikka's resignation as the chief executive officer and managing director of the company on Friday.

The benchmark BSE index closed down by 265.83 points or 0.84 per cent at 31,258.85, its lowest in five sessions, while the broader NSE index ended lower by 83.05 points or 0.84 per cent lower at 9,754.35. Both the indexes fell for a second straight day.

Infosys closed 5.37 per cent lower on the BSE. The stock is down 14.4 per cent since Vishal Sikka's resignation. Tata Consultancy Services Ltd ended the day 0.6 per cent higher.

Among BSE sectoral indices, IT index fell 2.04 per cent, followed by TECk 1.89 per cent, PSU 1.81 per cent and infrastructure 1.68 per cent.

Major Sensex losers were Infosys (-5.37%), Adani Ports (-2.74%), Dr Reddy's (-2.51%), Sun Pharma (-2.01%) and ONGC (-1.99%), while the top five gainers were Axis Bank (+0.7%), TCS (+0.34%), M&M (+0.27%), HDFC (+0.22%) and ITC (+0.12%).

Infosys shares continued its slide even as the company’s board on Saturday approved the share buyback plan of up to Rs 13,000 crore to reward shareholders.

The buyback price of Rs 1,150 per share was nearly 25 per cent higher than Friday’s closing of Rs 923.10 apiece.

“Difficult to gauge when Infosys shares will see a recovery,” said Pankaj Kapoor, executive director of India IT services and software equity research at JM Financial Institutional Securities Ltd.

“There are too many uncertainties surrounding the company now.”

The Nifty Metal index rose over 2 per cent with Vedanta rising as much as 2.7 per cent and Hindalco Industries Ltd gaining up to 2.8 per cent.

London Metal Exchange (LME) zinc rose about 1 per cent to its highest in almost a decade, while copper rose as much as 0.6 per cent.

Global markets

European stocks fell for a third session, though M&A activity helped shipping giant Maersk jump and the rally in metals sent Rio Tinto, BHP Billiton and Anglo American higher.

Asian shares were fragile on Monday as investors remained unconvinced about US President Donald Trump's ability to fulfil his economic agenda, even as the departure of his controversial policy strategist raised hopes of some progress.

Japan's Nikkei shed 0.4 per cent to hit a 3-1/2-month low, shrugging off a Reuters poll which showed confidence at Japanese manufacturers rose to its highest level in a decade in August.

MSCI's broadest index of Asia-Pacific shares outside Japan was barely in the black thanks to modest gains in China, but in most other markets, including Australia , South Korea and Taiwan were in the red.

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