Further, investors turned cautious and booked profits ahead of the key events including Economic Survey, Railway Budget and Union Budget along with the expiry of February derivative series due later during the week.
Further, foreign institutional investors were net sellers in Indian equities to the tune of Rs 89 crore on Friday, as per provisional stock exchange data.
Gold hovered around the key $ 1,200-an-ounce level on Monday, its lowest in seven weeks, as support for the safe-haven metal eased after a deal was struck over Greece’s debt, while the absence of major consumer China also took a toll.
Oil prices dipped on Monday on worries about oversupply in North America, with Brent futures testing support around $ 60 a barrel and U.S. contracts hovering around $ 50.70.
The rupee strengthened by seven paise to 62.15 against the US dollar on Monday at the Interbank Foreign Exchange on increased selling of the American currency by exporters and banks.
The country’s largest lender, State Bank of India lost 2.4%. It plans to overhaul its transaction banking business, which will include involving trade finance and IT platform-based servces for liquidity management.
Hindalco lost over 1% on profit booking. Last week, Hindalco won the Gare Palma IV/4 coal block in Chhatisgarh for Rs 3,001 per tonne, according to the results of e-Auction for Schedule II coal mines announced by the Ministry of Coal on Friday, 20 February 2015.
Other major losers include Axis Bank, GAIL, ONGC, HDFC, Tata power down over 1% each.
A smart rally was evident in the capital goods sector on expectations that the government will increase infrastructure spending and announce incentives to the manufacturing sector to boost growth. L&T surged nearly 1%.
Shares of Mahindra & Mahindra witnessed buying interest as a media report suggest that the Swedish luxury carmaker Volvo is looking for a partner for its manufacturing plant in India. The stock was up over 1%.
Sesa Sterlite gained 0.6% after the company’s subsidiary Bharat Aluminium Company (Balco) bagged one more coal block and total two mines in the first tranche of auction.
In the broader market, both the BSE Midcap and Smallcap indices were down between 0.3% and 1%. Market breadth ended weak on the BSE with 1,700 declines against 1,194 advances.