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Markets have started the trading session on a negative note tracking weak Asian cues along with auto and bank shares leading the fall.
By 9:30, the Sensex was lower by 41 points at 21,079 mark and the Nifty slipped by 20 points at 6,257 levels.
Indian markets this week would likely be marked by reaction to subdued economic growth data for December quarter, overseas investment trends and global cues, experts have said.
Meanwhile, stock traders are gearing up for the start of a pre-election rally in the days ahead, as hopes of a Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government coming to power heighten.
On the global front, escalating political tensions in Ukraine pressured Asian stocks on Monday, forcing anxious investors to cut their exposure to riskier assets in favour of traditional safe haven bets such as the Japanese yen and Swiss franc.
Ukraine mobilised for war on Sunday and Washington threatened to isolate Russia economically, after President Vladimir Putin declared he had the right to invade his neighbour, in the biggest confrontation between Russia and the West since the Cold War.
China's factory activity shrank again in February as output and new orders fell, a private survey found on Monday, reinforcing concerns of a slowdown in the world's second largest economy.
The final Markit/HSBC manufacturing Purchasing Managers' Index (PMI) fell to a seven-month low of 48.5 in February, the third straight monthly decline, from January's 49.5. The figure was in line with the 48.3 reported in the preliminary version of the PMI released on Feb 20.
US stocks rose on Friday as some positive economic data boosted the S&P 500 to record levels for a second straight day and put major indexes on track for strong gains in both the week and the month.
Back home, foreign institutional investors (FIIs) bought shares worth a net Rs 591.82 crore on Friday, as per provisional data from the stock exchanges.
Sectors like Banks, Capital Goods, Realty, Power, Oil & Gas, Metals, Consumer Durables and FMCG have declined between 0.2-1%. However, BSE Healthcare index has gained 0.4%.
The main losers on the Sensex at this hour include Tata Motors, Sesa Sterlite, Dr Reddy’s Labs, Tata Power, L&T, ONGC, Coal India, Axis Bank, SBI, Hero Moto and NTPC, all declining between 0.5-1.4%.
Auto stocks are in focus amid February sales data trickling in. Maruti Suzuki, Mahindra & Mahindra and Tata Motors sales declined in February, companies said on Saturday. Tata Motors is the top Sensex loser, down over 1%.
On the gaining side, Maruti Suzuki, Sun Pharma, Hindalco, BHEL and Tata Steel have gained between 0.5-1.4%.
Among other shares, AstraZeneca Pharma India is locked in upper circuit of 20% at Rs 1,113 on the NSE after its Sweden-based parent company AstraZeneca Pharmaceuticals AB planning to delist company’s equity shares from the Indian stock exchanges.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up by nearly 0.2%.
The market breadth in BSE remains positive with 535 shares advancing and 486 shares declining.
