The Sensex has fallen for three straight days and the Nifty is trading below its long term support indicating bearishness on the Street. Analysts are uncertain about a pullback rally amid selling by foreign funds.
Foreign institutional investors (FIIs) have sold Indian shares for three straight days now after buying over $10 billion so far this year. The selling comes amid worries about the domestic economy and on lingering concerns about political stability.
Independent analyst Sarvendra Srivastava said sharp downsides are likely if 5,550 levels are broken on the Nifty.
Market analyst Sharmila Joshi said there is caution ahead of the earnings season and markets should trade in a 25-30 point range.
37 shares gained on the Nifty led by Tata Motors, which reported strong sales number in the U.K. Bharti Airtel, India's biggest mobile carrier, rose 1.5 per cent. The Supreme Court will hear Bharti Airtel Chairman Sunil Mittal's petition challenging the summons of a court in a case related to alleged irregularities in the allocation of mobile phone bandwidth.
Realty major DLF, two-wheeler maker Bajaj Auto and FMCG major HUL gained over 1 per cent in early trade.
Drug maker Ranbaxy and tobacco major ITC were among the top Nifty losers. Maruti Suzuki, India's biggest car maker fell 0.9 per cent on profit taking. The stock had gained over 7 per cent on Friday.
Asian stock markets were mostly flat to lower Monday after a disappointing U.S. jobs report, although the Nikkei piled on more gains as the yen's dramatic fall boosted the country's powerhouse export sector.
Markets in the U.S. dropped on Friday after the government reported a sharp decline in hiring in March. The closely watched report was a letdown for investors who had become more optimistic about the economy after recent positive signs on housing.
(With inputs from AP)