The Bombay Stock Exchange Sensex saw its first drop in three sessions as concerns grew among software services exporters over a stronger rupee. The 30-share index closed 130.25 points down at 29,518 on Monday, while the National Stock Exchange Nifty ended at 33.20 points lower at 9,126.85.

Stocks of Idea Cellular on the Bombay Stock Exchange Sensex fell by nearly 15% after the telecom company confirmed its merger with Vodafone India on Monday. The drop was attributed to Idea owning only 26% stake in the new venture.

IT stocks saw the biggest losses of the day after reports suggested that Cognizant might lay off more than 6,000 employees. Infosys, Tata Consultancy Services and Wipro’s shares fell by 2% on the BSE.

Among BSE sub-indices, healthcare was up 0.38%, realty rose by 0.32%, and power increased by 0.29%. Monday’s major gainers were HDFC Bank, Bajaj Auto and NTPC. Stocks of Kotak Mahindra Bank were up 1.23% after last week’s announcement that it would seek approval from shareholders to raise its foreign sharehoding limit.

On Nifty, Auropharma, Bharat Heavy Electricals and Coal India were the top gainers. Idea was down 10%, while stocks of TCS and Infosys saw a near-2% drop.

Moreover, the rupee traded stronger at 65.36 against the United States dollar after it hit a 17-month high of 65.22 last week. Despite the low figures, market sentiment remained positive on Monday after the Union Cabinet approved four drafrt Bills to pave the way for the implementation of the Goods and Services Tax.