Among the prominent index losers in trade were BPCL, Ultratech Cement, Reliance, ITC,Cipla and Coal India.
Non Banking Finance Companies were in the limelight after the Reserve Bank of India declared guidelines for new banking licences. Among the gainers from the sector were Shriram Transport Finance, L&T Financial Services, Mahindra and Mahindra Financial Services and Reliance Capital.
Shares of Power Finance also rallied after the company said its board would discuss applying for a bank licence.
Maruti Suzuki rallied despite awaiting an order from the Competition Commission of India on a few automobile companies that are using their dominant position in the country.
PSU banking stocks continued to find buyers at lower levels with State Bank of India, Syndicate Bank, Canara Bank, Bank of India and IDBI Bank all gaining in early trade.
Realty stocks were a little subdued in trade today with DLF dropping 1.5 per cent after rallying sharply on Friday. Other stocks from the industry saw marginal buying with Indiabulls, HDIL and Oberoi Realty among the gainers.
Metal stocks saw buying at lower levels with early gainers from the sector including JSW, Nalco, Hindalco and Tata Steel.
Meanwhile, markets in Asia were trading firm led by sharp gains in the Japanese Nikkei. Other Asian markets that were up included the Korean Kospi and the Singapore Strait Times.