The Sensex and the Nifty fell over 0.2 per cent at the closing session on Monday in the absence of directional cues. Profit-booking by funds and retail investors at higher levels amid forecast of below normal rains dampened the trading sentiment.
The 30-share BSE index Sensex ended at 22,631.61, down 56.46 points and the 50-share NSE index Nifty ended at 6,761.25, down 21.5 points.
Corporate earnings (Q4 March 2014 and year ended FY 2014) is likely to rule the market movement, while profit-booking at higher levels may increase volatility, said a report by Equentis Capital.
Among BSE sectoral indices, capital goods, auto, metal and FMCG indices fell the most by 1.01 per cent, 0.97 per cent, 0.53 per cent and 0.42 per cent, respectively. On the other hand, healthcare, realty and banking indices found investors' support and were up 1.65 per cent, 0.57 per cent and 0.36 per cent, respectively.
Cipla, Sun Pharma, Wipro, Dr Reddy's and SBI were the top five Sensex gainers, while the top five losers were GAIL, BHEL, Hero MotoCorp, Tata Motors and L&T.
European stocks rose as companies from AstraZeneca Plc to Bayer AG rallied amid an increase in mergers and acquisitions activity.
Asian shares were down due to rising tensions in Ukraine and as investors await the outcome of the US Federal Reserve’s policy meeting later this week.
Economists expect the Fed to further cut its stimulus programme following a string of figures showing the economy is improving.