Indian shares closed down on Monday tracking Asia and with only Reliance Industries showing some buoyancy.
Investors were nervous ahead of the GDP data for October-December, which might show a sharp slowdown.
The March derivative series also prompted investors to consolidate.
Sensex rose as much as 0.2% intra-day to touch 28,961.83 while Nifty rose to 8,948 after a long weekend. However, the benchmarks gave away early gains and ended in the red.
Sensex was down 81 points or 0.3% at 28,813 while Nifty closed down 0.5% at 8,896.70.
Reliance was up 4.5% while Lupin and Wipro gained 0.8%. HUL, TCS and Coal India were up 0.5-0.6% each.
Investors also factored in the slowdown in the October-December economic growth, which is forecast at a 3-year low of 6.4% as per a Reuters poll of economists.
The impact of demonetisation announced by Prime Minister Narendra Modi on November 8, 2016, is being attributed to the slowdown in the economy. Many economists expect the impact to continue in subsequent quarters as cash crunch crimped consumption and held back investment.
The MSCI’s index of Asia-Pacific shares outside Japan slipped 0.3% after falling 0.7% on Friday. Nikkei closed down 0.9% while Hang Seng ended down 0.2%, Kospi 0.4% and Strait Times indices were down 0.7% each.
Investors are awaiting Trump to spell out his proposed tax cut plans in his speech to a joint session of Congress on Tuesday.
On Monday, Asian stocks weakened tracking Wall Street and declining European government bond yields last week over political uncertainties.