Tech Mahindra and Mahindra Satyam shares were trading up 0.2% and 0.13% respectively on reports of the merger going through. The swap ratio was decided at 8.5 shares of Satyam for every share of Tech Mahindra.
At 09.40 am IST, the 30-share BSE Sensex was trading at 17556.95, down 44.76 points or 0.25% and the NSE Nifty was trading at 5345.90 down 19.05 points 0.36%.
Muthoot Finance shares plunged after Reserve Bank of India tightened rules for NBFC gold loans.
In Asia, most of the major markets were trading in mixed terrain, the Nikkei 225 up by 0.01%.The Hang Seng was down by 0.10% and Shanghai was down by 0.42%
Losers in the morning trade were Jindal Steel, IDFC, JP Associated, PowerGrid and Maruti.