Benchmark indices opened the day flat in trade despite good IIP numbers released on Friday. The Sensex was trading marginally lower by 5 points, while the Nifty was down 7 points in trade.
Capital Goods stocks like Bhel, Larsen and Toubro were in the limelight after IIP data came in better than expected.
ONGC was trading higher after reports that for first time in seven years, the company reported an annual increase in oil production from its western offshore fields.
Telecom stocks continue to gain ground with Idea and Bharti Airtel among the gainers. Gail was the top Nifty loser in trade after Credit Suisse downgraded the stock.
Meanwhile, Asian markets got off to a cautious start after a solid rally witnessed in the last few weeks. The Shanghai Composite, however, continued to rally with the markets up more than one per cent in trade.
The Japanese Nikkei was flat after hitting more than 20,000 points in trade.