BENGALURU: Indian shares closed lower on Monday with investors fretting about contagion risks in the global banking system, as relief from a historic Swiss-backed acquisition of troubled Credit Suisse by UBS Group turned out to be short-lived.

The Nifty 50 index was down 0.65% at 16,988.40, while the S&P BSE Sensex closed 0.62% lower to 57,628.95.

Eleven of the 13 major sectoral indexes declined with high weightage financials and information technology (IT) falling 0.69% and 1.43 percent, respectively.

Over the weekend, UBS said it will buy Credit Suisse for 3 billion francs ($3.2 billion). Soon after the announcement, global central banks came out with statements to reassure markets, but to no avail.

“Investor sentiment has been hurt by worries over the global banking system,” Anita Gandhi, director at Arihant Capital Markets said.