Experts feel foreign institutional investors (FIIs) could take some money off the table. "There could be some FII selling pressures after massive inflow in the last couple of days. Further expect volatility because of March derivative segment expiry this week," said Standard Chartered Securities in its morning note.
Among sectoral indices, the BSE Oil & Gas (-1.58%), BSE Auto (-0.14%) and BSE IT (-0.45%) were the major losers. Among individual stocks, RIL (-2.72%), ONGC (-2.02%) and Wipro (-1.25%) were the major losers on the 30-share Sensex.
Among Asian indices, the Hang Seng (-0.35%), Kospi (-0.30%), Straits Times (-0.28%) and Jakarta Composite (-0.42%) were the major losers.
China's flash Markit/HSBC Purchasing Managers' Index (PMI) for March, which was released on Monday, fell to an eight-month low of 48.1.
Experts feel the Chinese government could launch a new stimulus package. "While the Lunar New Year partially hampers interpretation, the sagging industrial production data suggest that GDP growth momentum is now the worst since late 2008," said Richard Iley, chief Asia economist, BNP Paribas. "More policy stimulus is likely forthcoming," he added.