Equity benchmark Sensex dropped 127 points on Monday, weighed by losses in index heavyweights Reliance Industries, ICICI Bank and HDFC Bank.

The 30-share BSE index ended 127.31 points or 0.22 per cent lower at 58,177.76, while the broader NSE Nifty slipped 13.95 points or 0.08 per cent to 17,355.30.

Reliance Industries was the top loser in the Sensex pack, shedding over 2 per cent, followed by ICICI Bank, HUL, HDFC Bank, M&M, Ultra Cement, IndusInd Bank and Tech Mahindra.

On the other hand, TCS, Bharti Airtel, Bajaj Finserv, Tata Steel, Maruti and Kotak Bank were among the gainers.

"Indian equity benchmarks continued to trade in the red zone in the afternoon session. On the global front, Asian markets were trading mixed amid a surge in US inflation to a record high...(and) concerns the Federal Reserve will be forced to tighten monetary policy sooner than later," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers.

Elsewhere in Asia, bourses in Shanghai, Seoul and Tokyo closed in the positive territory, while Hong Kong ended in the red.

Equities in Europe were trading with significant gains in mid-session deals.

Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 423.44 crore on Thursday, as per provisional exchange data.

Meanwhile, international oil benchmark Brent crude rose 0.91 per cent to USD 73.58 per barrel.