Mumbai, Nov 21 (IANS): Indian equity markets on Monday slipped as the impact of demonetisation on the Indian economy and a weak rupee depressed investor sentiment.

Both the key indices traded with losses of around a per cent each, as banking, automobile and metal stocks came under heavy selling pressure.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 99.45 points or 1.23 per cent to 7,974.65 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,246.70 points, traded at 25,896.88 points (at 1.15 p.m.) -- down 253.36 points or 0.97 per cent from the previous close at 26,150.24 points.

The Sensex has touched a high of 26,270.28 points and a low of 25,777.21 points during the intra-day trade so far.

The BSE market breadth was skewed in favour of the bears -- with 2,060 declines and 387 advances.

On Friday, the equity markets had closed in the red on the back of foreign fund outflows, along with a weak rupee and heightened chances of a US rate hike.

The barometer index was down by 77.38 points or 0.30 per cent, whereas the NSE Nifty edged lower by 5.85 points or 0.07 per cent.

"The Indian equity markets are in the negative zone as domestic cues are not supportive due to the demonetisation move," Astha Jain, Senior Research Analyst at Hem Securities, told IANS.

"The markets are expected to remain bearish as demonetisation will impact the Indian economy in the short term."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, selling pressure was witnessed in the equity markets due to depreciation of the Indian rupee against the US dollar.

"IT stocks held the initial gains, while banking stocks traded with heavy selling pressure," Desai said.

"Pharma, auto, oil-gas, aviation and FMCG stocks traded lower, while cement and power stocks also traded down due to selling pressure."