The benchmark indices opened on a flat note on the back of cautious investors anticipating Donald Trump's protectionist policies.
On a domestic front, investors kept low awaiting the Union Budget later this week and key earnings report later in the day.
At 9.45 AM, The S&P BSE Sensex was trading 27,826, down 55.91 points while the Nifty50 was trading 8,622, down 18.70 points.
"The ongoing uptrend in the indices could continue further towards 8737 and 8820 in near term. However, citing the 'Union Budget 2017-2018' which is scheduled to be announced on 1st February, there could be increased volatility during the forthcoming week. Hence, traders are advised to trade with proper risk management strategies on their trading positions," said an Angel Broking report.
L&T gained 1 per cent after the company reported a 38.86 per cent rise in consolidated net profit at Rs 972.47 crore for the quarter ended December 31, 2016 against Rs 700.34 crore reported for the corresponding quarter last year.
Among the top performers on the BSE Sensex were Airtel and Sun pharma gaining 4.42 per cent and 2.06 per cent respectively.
However, BSE IT sector index fell 0.5 per cent after Donald Trump's immigration ban order as IT firms remained uncertain on how this will affect the H1B visa norms.
Infosys, TCS, Wipro fell over 1 per cent each, becoming the biggest laggards on BSE Sensex.
Finance Minister Arun Jaitley is likely to hike service tax rate to 16-18 per cent from the current 15 per cent in the Budget as a forerunner to GST rollout later this year
The move, that will make air travel, restaurant bills, phone bills and other services expensive.
Among the Asian stock markets, China's Shanghai Composite Index was trading flat, up 9 points, Hong Kong's Hang Seng Index fell 13 points while Japan's Nikkei slid 0.5 per cent early on Monday.
Wall Street ended on a mixed note on Friday after the initial fourth-quarter GDP read fell short of estimates, but managed to record weekly gains of around 1%. The Dow Jones slipped 10 points but held above 20,000-mark.