The BSE Sensex and Nifty edged lower on Monday tracking weakness across Asian stocks. At day's low, the Sensex declined over 100 points while the Nifty slipped below the key 8,250 level.
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 4.6 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.
RIL, Hero MotoCorp, Bajaj Auto, JSPL and Cairn India traded with nearly 2 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.
FMCG major HUL rose over 3 per cent to be the biggest Nifty gainer. Prakash Diwan, director at Altamount Capital Management, said that rumours of an open offer from its parent Unilever is driving the HUL stock.
Tech Mahindra, PNB and Bank of Baroda, each up over 2 per cent, were the other major gainers.
As of 1.20 pm., the Sensex traded 77 points lower at 27,380, while the Nifty was down 16 points at 8,268. (