Mumbai: Market benchmark Sensex dropped by 72 points to close at 40,284.19 on Monday due to losses in private banks, IT and energy stocks amid concerns over the economic slowdown.
The 30-share index had opened on a firm note but turned negative in afternoon session due to profit booking in IT, banking and oil and gas stocks.
Similarly, the broader NSE Nifty slipped 10.95 points, or 0.09 per cent, to end at 11,884.50. As many as 29 of its constituents advanced while 20 dropped.
Yes Bank was among the top losers in the Sensex pack, falling up to 4.08 per cent, followed by Bajaj Auto, M&M, Hero MotoCorp, HDFC Bank, ONGC and TCS which declined up to 2.05 per cent.
On the other hand, Bharti Airtel, Tata Steel, Sun Pharma, PowerGrid, IndusInd Bank, Axis Bank, SBI, Vedanta and Tata Motors rose up to 4.60 per cent.
Broader BSE midcap and smallcap indices outperformed benchmarks, rising up to 0.44 per cent.
Despite positive cues from global markets, sentiment in the domestic market was subdued on account of multiple reports suggesting that the pace of India's economic growth may falter further, traders said.
"Post Q2 results, market seems to have entered an indecisive period of trade having rallied well in the last two months and lack of major data releases this week. Globally, investors are awaiting triggers on resolution of US-China trade tension and future interest rate trajectory of US central bank. In the short-term volatility may stay but banks are expected to do well given a new life to distressed asset," Vinod Nair, Head of Research, Geojit Financial Services said.
Markets remained flat throughout the day as investors were cautious, Paras Bothra, President of Equity Research, Ashika Stock Broking said.
Sectorally, BSE capital goods, auto, energy, FMCG, IT and industrials indices fell up to 0.68 per cent.
While BSE telecom, metal, basic materials, healthcare and utilities indices rose up to 3.42 per cent.
Metal stocks closed higher as the sentiment turned positive for base metals with the news that US and China are progressing gradually and in a more constructive manner on trade tariff front, Kotak Securities Senior Vice-President, Equity Technical Research, Shrikant Chouhan said.
NSE Metal index rose by 1.79 per cent, led by gains in Tata Steel (4.41 per cent), Hindalco (3.33 per cent) and SAIL (2.75 per cent).
Market breadth was negative as 1,404 stocks declined while 1,154 gained on BSE.
Bourses in Hong Kong, Tokyo and Shanghai settled on a positive note amid optimism about US-China trade talks while those in Seoul ended in the red.
European equities were trading on a mixed note in their respective early deals.
Meanwhile, the Indian rupee depreciated marginally to 71.79 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, rose 0.09 per cent to USD 63.36 per barrel.