The BSE Sensex and Nifty edged lower on Monday tracking weakness across Asian stocks. The Sensex declined over 100 points, while the Nifty slipped below the key 8,250 level in opening trade.
Continued selloff by foreign institutional investors also seems to be weighing on sentiments, analysts say. FIIs sold cash shares worth Rs 298 crore (net) on Friday, taking their selling streak to a fourth consecutive session.
Metal, energy and auto stocks led the declines. Coal India was the top Nifty loser, down 3 per cent on speculation that the government will soon come out with a date for 10 per cent stake sale in the PSU major.
"There are few takers for Coal India in the current environment," said Prakash Diwan, director at Altamount Capital Management.
Tata Motors, Cairn India, JSPL and Gail India were other shares that traded with over 1 per cent losses.
Infosys, which beat December-quarter earnings estimates on Friday, led the gainers in Nifty. The stock rose over 1 per cent following the sharp 5 per cent jump on Friday.
"Infosys is inching close to TCS as far as margins are concerned... It looks a good bet," said TS Harihar of HRBV Client Solutions.
Cigarette maker ITC and IT major Tech Mahindra also advanced over 1 per cent.
Indian markets posted their biggest weekly falls in four weeks after shares slumped more than 3 per cent on Tuesday, as a continued slide in oil prices roiled emerging markets. But traders hope markets to consolidate around current levels.
As of 09.30 a.m., the Sensex traded 66 points lower at 27,392, while the Nifty was down 19 points at 8,266.