The benchmark BSE Sensex fell over 117 points in early trade on continued capital outflows by foreign funds and selling by investors despite improved IIP numbers and steady inflation data.
A weak trend at other Asian markets after negotiations between Greece and its creditors broke down dampened sentiment.
The 30-share barometer, which had gained 54.32 points in the previous session on Friday, was trading down 117.46 points, or 0.44%, at 26,307.84 with IT, technology, consumer durables, power, banking, PSU and metal sectors leading the losses.
On similar lines, the NSE Nifty shed 38.05 points, or 0.47%, at 7,944.85.
Brokers said sentiment remained weak even as positive IIP data — industrial production grew at a 2-month high of 4.1% in April — failed to trigger buying.
Meanwhile, retail inflation edged up to 5.01% in May as against 4.87% in April. The Consumer Price Index stood at 8.33% in May 2014.
Shares of Cairn India today rose 0.50% to Rs 181.65 after the announcement of merger between metal and mining company Vedanta and the oil firm in a $2.3 billion all-share deal to create India’s largest diversified natural resources play.
Vedanta Ltd was also trading 0.92% higher at Rs 185.70.
Among other Asian markets, Hong Kong’s Hang Seng was down 0.68% while Japan’s Nikkei slipped 0.99% in early trade.
The US Dow Jones Industrial Average ended 0.78% lower in Friday’s trade.
PTI