Indian shares closed lower Monday as foreign funds stayed out of the market, triggering moderate profit taking by local investors, dealers said.
The Mumbai stock exchange's 30-share Sensex slipped 0.08 percent or 7.79 points to close at 9,390.14 as 1,836 stocks gained and 699 declined.
"Most funds from Singapore and Hong Kong were absent following New Year holidays," said Vijay Tilakraj, chief dealer at domestic brokerage Prabhudas Liladhar.
Dealers said foreign funds are expected to allocate more funds for Indian equities this year after massive gains in 2005.
The Sensex gained 42 percent in 2005 on the back of large foreign fund investments that totalled a record 10.7 billion dollars.
A robust Indian economy has been the key factor attracting foreign money into Indian stock markets.
Automobile maker Tata Motors slipped 13.65 rupees or 2.09 percent to 639.35. while leading software companies also declined.
Tata Consultancy, the country's largest software exporter, fell 12.55 rupees or 0.74 percent to 1,689.80 while Infosys Technologies, the second largest software exporter, lost 17.90 rupees or 0.60 percent to 2,978.85.