MUMBAI: Stock market benchmark indices Sensex and Nifty declined in early trade on Monday amid selling in blue-chip IT firms and profit-taking after the recent sharp rally in equities.
The 30-share BSE Sensex declined 93.95 points to 80,919.19 in early trade. The 50-share NSE Nifty dipped 30 points to 24,968.80.
In the 30 Sensex firms, HCL Tech, Infosys, Power Grid, Bharti Airtel, UltraTech Cement and Tata Consultancy Services were among the major laggards.
State Bank of India, HDFC Bank, ICICI Bank and InterGlobe Aviation were the winners.
"After a sharp weekly advance and a subdued Muhurat trading session, the market enters the new week facing a key test of momentum, with investors likely to weigh the scope for further gains against the prospect of near-term profit-taking.
"The immediate focus will be on whether underlying buying interest can sustain the recent advance, particularly against the backdrop of lingering global concerns surrounding the AI trade and ahead of Thursday's CPI data, which could provide the next significant directional cue for domestic equities," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Last week, the BSE benchmark soared 6,568.49 points, or 8.82 per cent, and the Nifty jumped 1,977.25 points, or 8.57 per cent.
Brent crude, the global oil benchmark, traded 0.16 per cent lower at USD 98.16 per barrel.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.
The US equity markets ended mostly higher on Friday.
Benchmark indices Sensex and Nifty ended marginally lower in the special Diwali Muhurat trading session on Sunday amid profit-taking by investors after a seven-day rally.
After starting the special trading session to mark the beginning of Hindu calendar Samvat 2083 on a bullish note, the BSE benchmark Sensex failed to sustain the rally. The barometer dipped 28.62 points, or 0.04 per cent, to settle at 80,999.40.
The Nifty declined 43.95 points, or 0.18 per cent, to end at 24,986.40 after a positive beginning.
Muhurat trading is a symbolic market session held on Diwali, which also marks the beginning of the new Hindu calendar year. It is believed that trading during the 'Muhurat' or auspicious hour brings prosperity and financial growth for the stakeholders.
Unlike regular trading days, when equity markets operate from 9:15 am to 3:30 pm, Muhurat trading runs for a shorter period.