NBFC stocks drag Sensex lower amid fresh concerns over liquidity

Indian shares closed lower on Monday, dragged by non-banking financial companies after a top government official raised concerns about liquidity in the sector.

However, losses were capped by gains in market heavyweights Reliance Industries Ltd and State Bank of India .

The benchmark BSE Sensex fell 0.17 percent to 34,950.92, while the broader NSE Nifty declined 0.27 percent to 10,524.

Shares of SBI ended 3.36 percent higher after the country's biggest lender reported its first quarterly profit in four.

Among losers, Cipla fell 7.3 percent after the drugmaker posted a near 11 percent drop in its September-quarter profit and warned of "multiple headwinds" in the second half of the financial year.