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Markets have started the trading session on a lower note tracking weak Asian cues. Selling among banking and capital goods shares have also dampened the sentiments.
By 9:30, the Sensex was lower by 160 points at 19,567 mark and the Nifty slipped by 48 points at 5,785 levels. Indian financial markets will be closed on Wednesday, on account of Gandhi Jayanti.
The government will announce the June quarter current account and fiscal deficit data today, which will set the tone for stocks in the days ahead.
US stocks declined on Friday and the S&P 500 and Dow posted their first weekly drop in four, as Democrat and Republican lawmakers struggled to agree on an emergency funding bill to avert an US government shutdown day away.
The S&P 500 declined 1.1% for the week and is roughly 2% below its record high set September 18 when the Federal Reserve announced it would keep its stimulus program unchanged for the present.
The Dow Jones industrial average was down 70.06 points, or 0.46%, at 15,258.24. The Standard & Poor's 500 Index was down 6.92 points, or 0.41%, at 1,691.75. The Nasdaq Composite Index was down 5.83 points, or 0.15%, at 3,781.59.
Asian stocks fell on Monday on concern the US government is headed for a shutdown amid a budget stalemate.
Key benchmark indices in Japan, Hong Kong, Taiwan, Indonesia, Singapore and South Korea fell 1-2%. China's Shanghai Composite rose 0.45%.
Back home, the rupee fell on Monday, tailing global risk-off sentiment on a potential shutdown of the U.S. government, but was still on course for its best month in a year. The rupee was at 62.93/95 to the dollar versus its Friday close at 62.51/52.
On the sectoral front, BSE Bankex has plunged by nearly 2% followed by counters like Realty, Capital Goods, Power, PSU, Metal, Auto and Consumer Durables, all slumping by 1% each. However, BSE IT index has surged by nearly 1%.
The main losers on the Sensex at this hour include BHEL, Tata Steel, SBI, Bharti Airtel, ICICI Bank, M&M, ONGC, L&T and GAIL, all declining between 1-4%.
Meanwhile, Infosys has gained by over 1%.
Among other shares, ING Vysya Bank has surged over 7% to Rs 548 in early morning deals on BSE on reports that the promoter is planning to sell its entire stake in the private sector bank.
The broader markets are under performing the benchmark indices- BSE Midcap and Smallcap indices are trading marginally negative.
The market breadth in BSE remains marginally weak with 445 shares declining and 364 shares advancing.
