Domestic equity markets snapped the nine-day winning streak on Monday as the benchmark indices settled lower after an extended weekend. India's second-largest software exporter, Infosys, reported a disappointing performance in the March 2023 quarter and spoiled the party for bulls. Muted economic data and expectations of the aggressive US Federal Reserve also kept traders on the tenterhooks during the session. The sell-off was majorly triggered by muted numbers from the domestic IT majors but headline peers staged a rebound in the latter half of the session. For the day, the 30-share pack BSE Sensex declined 520.25 points, 0.68 per cent, to 59,910.75, while NSE's NIfty50 dropped more than 121 points, or 0.68 per cent, to 17,706.86. However, broader markets outperformed the headline peers as BSE midcap and smallcap indices settled in green. Fear gauge India VIX spiked over 3 per cent to 12.29-level. The much-anticipated profit-taking came to the fore as technology stocks led the correction that saw the Sensex slump below the psychological 60,000 mark. The real damage was done by the frontline IT stocks with Infosys coming under severe hammering after its corporate earnings failed to meet street estimates, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. "On the daily charts, the Nifty has formed a bar-reversal candlestick formation indicating time-based correction till the market is not crossing 17,870 levels. For the bulls, 17,800-17,870 would act as immediate resistance zones while 17,600-17,500 would act as key support zones. Fresh buying momentum could be seen only above the levels of 17,870," he said. Among the sectors, Nifty IT index was the top laggard as the index slumped 5 per cent, while Pharma index dropped about a per cent. Media and Financial Services indices were other laggards. Among the gainers, Nifty PSU Bank index rose 3 per cent, while Nifty FMCG, Realty and Oil & Gas indices added a per cent, each. In the Nifty50 pack, Infosys plunged over 9 per cent after a poor performance in the March 2023 quarter. Tech Mahindra plunged more than 5 per cent after Citi downgraded the stock to 'sell' rating. HCL Technologies settled 3 per cent lower, while L&T, NTPC and Wipro were down 2 per cent, each. Among the gainers, Nestle India jumped 4 per cent during the session as the FMCG counter topped among the gainers in the Nifty50 index. Power Grid, SBI and Britannia Industries were up 2 per cent, each. Coal India, Hindalco and SBI Life Insurance gained up to 2 per cent during the session. The market responded negatively to the weak start of the earnings season by IT bellwether and their cautious outlook, said Vinod Nair, Head of Research at Geojit Financial Services. "The US 10-year bond yield rose as solid US job data raised concerns over further rate hikes by the Fed. The earnings reports, primarily from the IT and banking sectors, will influence market trends in the coming days. We expect Nifty50 earnings to grow 10 per cent in Q4 FY23, driven by banking and finance, auto, telecom, and FMCG," he said. A total of 3,768 shares were traded on BSE on Monday, of which 1,852 settled with gains. 1,735 stocks ended the session lower, while 181 shares remained unchanged. A total of 309 shares hit their upper circuit, whereas 162 tested the lower circuit levels for the day. In the broader market space, LTIMindTree plunged about 7 per cent, while Sonata Software tumbled 6 per cent amid the selloff in the IT stocks. 360 One Wam and Archean Chemical Industries tanked 6 per cent each during the day. Hikal shed 5 per cent for the session. On the contrary, Pokarna and Precision Camshafts hit an upper circuit of 20 per cent during the session as Vijay Kishanlal Kedia picked up a significant stake in the latter one. PSU banks including Punjab & Sind Bank and Indian Bank rose up to 16 per cent. Mangalam Organics was also up 16 per cent, HLE Glascoat settled 15 per cent higher.