The 30-share BSE Sensex, which opened lower but later traded with gains on sporadic buying by investors, erased its earlier gains and closed lower by 138.74 points or 0.17 per cent at 80,081.98, with 22 of its constituents ending in the red.

The two key equity benchmark indices, Sensex and Nifty, on Monday began trading on a lower note. As of 9:30 AM, the BSE Sensex declined 126 points to trade at 79,360.15, while the NSE Nifty50 fell nearly 50 points to 24,

Investors are closely watching the movements of Foreign Institutional Investors (FIIs) as global markets react to recent developments, including Donald Trump's victory in the US elections and China’s restrained approach to economic stimulus.

Indian stock markets opened higher on Monday, driven by gains in Tata Motors and Asian Paints, but traded with caution ahead of key corporate earnings reports. Despite the initial surge, technical indicators suggest continued market volatility and consolidation in the near term.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,130 level, a discount of nearly 90 points from the Nifty futures’ previous close.