Mumbai, Dec. 2 -- Key equity benchmarks fell sharply today, extending their losing streak to a third straight session. Sentiment weakened as the rupee slipped and FII outflows continued. Global cues were also soft. US market closed lower on rising Treasury yields, while Asian market posted only a mild rebound.

Expectations of an RBI rate cut faded after strong GDP data, and uncertainty around US-India trade added to the caution. The Nifty closed below 26,050, dragged down by banks and financials. The NSE's sectoral index realignment under SEBI's new rules triggered corrections in major banking counters.

The S&P BSE Sensex declined 503.63 points or 0.59% to 85,138.27. The Nifty 50 index lost 143.55 points or 0.55% to 26,032.20. In the pa...