Indian shares recorded a fourth straight session of losses on Monday as cigarette maker ITC slumped nearly 7 per cent in its biggest fall in nine months on worries about a "sin" tax, while oil producers fell after OPEC left output targets unchanged.

Indexes hit their lowest since November 18 as sentiment sours ahead of the US Federal Reserve's meeting next week, where it is widely expected to raise rates for the first time in about a decade.

Still, analysts say India's proposed sales tax edged closer to approval on Friday after a government-appointed panel backed the lower rate and simpler structure that the opposition Congress party had demanded.

"It's being actively discussed so the markets expect progress on the GST front," said Deven Choksey, managing director at KR Choksey Securities.

The 30-share BSE index Sensex fell 108 points or 0.42 per cent to 25,530.11 and the 50-share NSE index Nifty declined 16.5 points or 0.2 per cent to 7,765.40.

Among BSE sectoral indices, FMCG index fell the most by 2.45 per cent, followed by metal 0.77 per cent, PSU 0.7 per cent and oil & gas 0.46 per cent. On the other hand, healthcare index was up 0.77 per cent, followed by realty 0.5 per cent, banking 0.3 per cent and consumer durables 0.29 per cent.

Top five Sensex gainers were Sun Pharma (+2.81%), HUL (+2.01%), Lupin (+1.41%), Tata Steel (+1.39%) and HDFC (+1.2%), while the major losers were ITC (-6.57%), Coal India (-2.24%), ONGC (-1.54%), Reliance (-1.25%) and Maruti (-0.91%).

ITC shares tumbled after the government appointed-panel recommended a "sin" tax of 40 per cent on luxury cars, aerated beverages, paan masala, and tobacco and tobacco products.

The tax was part of the recommendations on GST issued on Friday.

Among other losers, resources stocks were down as crude oil prices fell on Monday after OPEC failed to agree on output targets to reduce a bulging glut.

But GMR Infra shares gained on media reports that the GMR Group was in talks with PE firms for investment in its GMR Airports business.

Early trade

The Nifty and the Sensex opened in the green on positive global cues. The Nifty opened 35 points up at 7,816, while the Sensex opened 108 points up at 25,746.

A report by SMC Global said: "Asian stocks opened higher, after a solid US jobs report sent US equities soaring on Friday. The US dollar strengthened, while crude oil extended its slump after OPEC refused to curb production in the face of a global glut. US markets closed last Friday 2 per cent higher. The Dow Jones Industrial Average was up 370 points or 2.12 per cent at 17,848. The S&P 500 was up 42 points or 2 per cent at 2,092 and the Nasdaq was up 105 points or 2 per cent at 5,142. US non-farm payroll employment jumped by 211,000 jobs in November compared to economist estimates for an increase of about 190,000 jobs. Job growth in September and October was also upwardly revised to 145,000 jobs and 298,000 jobs, respectively, reflecting 35,000 more jobs than previously reported."

Global markets

In overseas stock markets, European shares rose on Monday to climb back from three-week lows reached last week, although Electrolux slumped after its deal to buy General Electric’s appliance business fell through.

Asian share markets edged higher in early trade after Wall Street welcomed an upbeat US jobs report that suggested the world’s biggest economy was well placed to handle an expected first increase in interest rates in almost a decade.

Strong jobs data and comments from the European Central Bank President, Mario Draghi, that the bank can step up monetary stimulus if needed triggered a rally in US stocks on Friday.

Foreign investors sold shares worth Rs 1,745.73 crore on Friday, as per provisional data.

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