The Sensex was trading lower by 44 points, while the Nifty drifted lower by 18 points in early trade. Among the gainers in trade were Sun Pharma, Reliance Industries, Gail and Infosys. Maruti Suzuki which fell sharply in trade on Friday was trading marginally higher.
Tata Motors which had rallied sharply on Friday lost marginal ground despite reports that the company was planning to setup a plant in Saudi Arabia to cater to the huge demand for Jaguar land Rover vehicles in the Middle East.
Bharat Heavy Electricals was higher ahead of the government's proposed divestment in the company to LIC.
Among the early Nifty losers in trade were Jaiprakash Associates, Sesa Sterlite, Hindustan Unilever, HCL Tech and Punjab National Bank.
Banking shares were also under pressure with notable losers being Canara Bank, Union Bank of India, Syndicate Bank and Yes Bank.
Power major, NTPC continued to drift lower and touched a new 52-week low on sustained selling. IT shares also lost some ground in trade with HCL Tech, Wipro and TCS among the losers.
Mid cap stocks were also not having a great day in trade with Steel Authority of India, Unitech and Bata India among the prominent losers.
Meanwhile, Asian stocks were down with cuts being seen in the Japanese Nikkei, the Hong Kong's Hang Sang and the Taiwan Weighted. However, the Chinese Shanghai Composite managed to buck the trend and was trading higher.