Indian stocks closed sharply lower on Monday, tracking the losses from Wall Street on Friday and pressured by more macroeconomic risks to India. The S&P/BSE Sensex fell 0.6% to 77,709 and the NSE Nifty 50 dropped 0.4% to 24,239. Banks led the losses in the session, pressured by higher credit costs and more capital outflows from India due to fresh pressure on the rupee. Another session of increases in oil prices lifted expected capital outflows as energy importers transact in dollars, limiting foreign exposure to Indian stocks. The Kotak Mahindra Bank fell 2.1%, while Axis Bank and HDFC Bank lost more than 5% after both holding companies reported their earnings for the June quarter. Meanwhile, a fresh selloff for tech companies in the US was felt in Mumbai due to the large exposure of North American clients for Indian companies. TCS and Infosys both closed 0.6% lower.