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Benchmark indices continue to remain range-bound with Sensex and Nifty oscillating between negative and positive zone.
By 11:30 AM, the Sensex was higher by 11 points at 20,727 mark and the Nifty gained by 2 points at 6,170 levels.
Market participants will keenly watch the Wholesale price inflation (WPI) data to be released later in the day.
Experts are of the view that WPI numbers will set the tone of the Reserve Bank of India's (RBI's) monetary policy scheduled on December 18. Earlier, consumer price-indexed inflation (CPI) or retail inflation rose to a nine-month high of 11.24% in November, prompting many to think that RBI could raise repo rates by 25bps to check the inflation.
Foreign institutional investors (FIIs) sold shares worth a net Rs 432.02 crore on Friday, 13 December 2013, as per provisional data from the stock exchanges.
On the global front, Asian share markets were mostly lower on Monday with investors just a few short days away from finding out the fate of US monetary stimulus, in what looks set to be a very close call indeed.
The Federal Reserve meets on Tuesday and Wednesday to discuss tapering its $85 billion in monthly bond buying and opinion is divided on whether it will move this week or wait for January -- or March.
Back home, the rupee weakened in morning trade today on dollar demand by oil importers. Though the weakness is marginal, currency dealers expect further depreciation during the day.
At 10:30 am, the rupee was trading at 62.20 compared with previous close of Rs 61.13 per dollar.
On the sectoral front, BSE IT, Consumer Durable and Capital Goods indices have gained by 1% each. BSE Oil & Gas and Metal indices are trading marginally lower.
The main gainers on the Sensex at this hour include Infosys, ICICI Bank, TCS, Sesa Sterlite and L&T, all gaining between 1-2%.
IT stocks gained ahead of the two-day policy meeting on interest rates in the United States which begins tomorrow, 17 December 2013. US is the biggest outsourcing market for Indian IT services firms.
Metal and mining stocks extended their recent losses as latest economic data showed that growth in China's manufacturing-sector activity slowed to three-month low. China is the world's largest consumer of copper and aluminum.
On the losing side, JSPL, Hindalco, Hero Moto, Maruti Suzuki and M&M declined between 1-2%.
Among other shares, AIA Engineering has soared 7% to Rs 483, also its record high on the BSE, after the company said it is augmenting its manufacturing capacity of wear parts from 2,00,000 Mt to 260,000 Mt by brownfield project which is expected to be commissioned in February, 2014.
The market breadth in BSE remains absolutely neutral.
