The broader market outperformed the benchmark indices as focus shifted to value buying in mid-cap and small-cap shares after the sharp gains on Friday. The Sensex was down 31 points at 17,399 and the Nifty closed flat at 5,278.
In the broader markets, the midcap and the smallcap indices were both up nearly 1 per cent each.
On the macro front, India's factories in June stepped up production and hired workers at the fastest rate in more than two years, but sagging demand abroad took a toll on growth in new export orders, a survey showed on Monday.
The HSBC manufacturing Purchasing Managers' Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May. It has kept above the 50 mark that divides growth and contraction for more than three years.
Meanwhile, India's exports fell 4.16 percent year-on-year to $25.68 billion in May, while imports fell 7.36 percent year-on-year to $41.9 billion, government data showed on Monday. May's trade deficit was $16.3 billion.
In Asia, Japan's Nikkei average erased earlier gains to end almost flat on Monday after an early rally spurred by an agreement to stabilise euro zone banks sputtered out as investors waited for more details.
The Nikkei ended at 9,003.48, almost unchanged, after having hit two-month high of 9,103.79 at one point.The other notable gainers were Hang Seng, Jakarta Composite, Straits Times up 1-2 per cent.
Gains in European markets were capped by the weakening growth outlook. CAC remained closed for the day while DAX and FTSE added 0.8 per cent and 0.5 per cent respectively.
Back home, among the sectoral indices, gains were led by realty up 2 per cent followed by consumer durables, bank, power and metal shares up between 0.6-1
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