Indian shares dipped on Monday after posting four consecutive weekly declines, with IT stocks leading a broad-based selloff as escalating tensions in the Middle East and rising odds of a US rate hike in September weighed on risk sentiment.
Changes to pre-open session rules aimed at aligning the mechanism more closely with the newly launched closing auction session (CAS) came into effect at the start of trading.
The Nifty 50 slipped 0.19% to 23,852.55 and the BSE Sensex shed 0.17% to 76,383.49 by 9:23 am.
Fourteen of the 16 major sectors logged losses.
IT index fell 1.7% after stronger-than-expected U.S. jobs growth data boosted bets of a September interest rate hike by the Federal Reserve.
Higher US rates could curb client spending, weighing on Indian IT firms that generate a significant share of their revenue from the United States.
Broader small-caps and mid-caps fell 0.2% each as rising crude prices and escalating US-Iran tensions dented risk appetite.