BSE Sensex and NSE Nifty fell on Monday, tracking weaker regional shares as fears about earlier-than-expected U.S. rate hikes weighed on sentiment, while cigarette maker ITC slumped after posting lower-than-expected earnings.

Federal Reserve Chair Janet Yellen indicated on Friday the U.S. central bank was poised to raise interest rates this year if the world’s top economy improved as expected.

Both bellwether indices BSE Sensex and CNX Nifty continued their north-bound journey for the third consecutive week, surging 634 points and 197 points, respectively, to log their 5-week closing highs on the back of a host of positive factors.

The market posted smart gains in three out of five alternate trading sessions of the week.

The benchmark BSE Sensex gained over 206 points and the NSE Nifty reclaimed the 8,400-mark in early trade today on across-the-board buying by funds and retail investors amid a mixed trend in other Asian markets.

Besides, value-buying by participants influenced market sentiment.

The benchmark BSE Sensex fell over 75 points in early trade today as stocks of oil&gas, PSU, metal, healthcare and banking companies succumbed to profit-booking after two sessions of gains.

The 30-share index declined by 75.33 points or 0.27 per cent to 27,611.97. In the previous two sessions, the gauge gained 481.24 points.

BSE Sensex and NSE Nifty rose on Monday, on track for their second consecutive session of gains, as blue-chips rose after forecast of a timely monsoon raised hopes the central bank would lower interest rates in June.

India’s weather office said on Thursday it expects monsoon rains to hit the southern Kerala coast around May 30, a timely arrival for farmers worried about dry weather from an El Nino weather pattern this year.

Amid high volatility and persistent foreign fund outflows, benchmark indices gained for the second consecutive week as the Street enters a phase of consolidation after losing nearly 7-8% in April.

The Sensex advanced 0.8% this week at 27,324, after adding 0.4% in Friday’s trade. The Nifty ended with gains 0.9% for the week. Broader markets witnessed a sharper rebound with BSE Mid- and Small-cap indices rising 2-3% each.

In a volatile trade, the benchmark BSE Sensex today recovered part of its overnight losses and was trading higher by 32 points at 27,238.01 in late morning deals following a slowdown in selling by foreign funds amid short-covering.

The BSE 30-share barometer resumed better and immediately touched a high of 27,379.57, up 173.48 points, or 0.64 per cent.

India's largest private sector lender ICICI Bank is set to expand its Chinese presence with the opening of a branch this weekend in Shanghai, China's biggest city and a major global financial hub.

The branch is likely to be inaugurated on Saturday by Prime Minister Narendra Modi, who is on a three-day visit to China. ICICI Bank's Managing Director and CEO Chanda Kochhar will also be present.

The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, on Wednesday approved the disinvestment department’s plan to sell stakes in Indian Oil and NTPC as part of the Centre’s Rs 41,000-crore divestment target for public sector undertakings. At current share prices, a planned 10 per cent stake sale in oil marketing company Indian Oil could fetch Rs 8,120 crore, while a five per cent stake sale in power producer NTPC could get the exchequer Rs 5,689 crore.

The Centre had last divested part of its stake in Indian Oil in March last year and in NTPC in February 2013.

The benchmark BSE Sensex tumbled over 444.65 points in late morning trade today as participants locked in gains after two sessions of gains and ahead of IIP and inflation data to be released later in the day.

The 2-day pullback rally fizzled out as the benchmark S&P BSE Sensex today slumped 444 points to quote at 27062.65 in late-morning deals following weakness in global stocks amid profit-booking by wary operators ahead of the IIP and CPI data to be released later in the day.

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