The week began on a very dull note for the markets, with the Sensex falling about 50 points, while the Sensex dropped 167 points in trade.
Heavyweights, HDFC and HDFC Bank were pulling the indices lower, while Maruti too dropped almost 2 per cent, after Friday's spectacular rally.
Nifty stocks that managed to show some gains included names like Indiabulls Housing, Sun Pharma, Asian Paints and Cipla.
However, auto stocks were the ones that clearly lost ground, as there were hopes that some policy measures would be announced by the government over the weekend. Tata Motors, Eicher Motors, Maruti and Hero Motor Corp were all trading lower.
Pharma stocks were the only ones that were seeing some buying support in trade.
Shares of Equitas Holdings dropped as much as 7 per cent, after the Reserve Bank of India on Friday denied an extension of the deadline to Equitas Small Finance Bank for its listing on the bourses.
Meanwhile, the Indian rupee opened the week flat, at 71.71 on Monday against Friday's close of 71.72 per dollar. Asian markets were having a very quite session in trade as Dow Futures were marginally higher. The Japanese Nikkei, The Shanghai Composite and the Hong Kong's Hang Sang were all seeing very small gains.