Indian shares fell for the fourth straight session on Monday dragged down by Jindal Steel and Power after the government rejected its bids for three coal mines put up for auction. Caution also prevailed ahead of the expiry of monthly derivatives contracts on Thursday.
The benchmark BSE index closed down 0.20 percent while the broader NSE index ended 0.23 percent down. Jindal Steel and Power fell 6.2 percent.
The coal ministry on Saturday rejected four of 33 bids for coal mines after saying it would examine nine blocks whose low bids had made them "outliers" according to the government.
Caution also prevailed ahead of the expiry of monthly derivatives contracts on Thursday.
"There are no immediate trigger points. March-quarter earnings are still sometime away. I think people will wait for the derivatives expiry and year-ending to initiate any fresh positions," said Daljeet S Kohli, head of research at IndiaNivesh.
Heavyweights, which had underperformed recently, gained. Oil and Natural Gas Corp, which had lost 2.9 percent so far this month through Friday, rose 1.2 percent. Hindalco Industries advanced 3.1 percent, while Usha Martin Ltd surged 13.7 percent after the government approved bidding of the coal mines by these firms, analysts said.
Shares in GMR Infrastructure advanced 4 percent as traders accumulated long positions in April derivative series a day ahead of opening of rights issue.
Coal India Ltd also fell 0.7 percent after HSBC downgraded the stock to "neutral" from "overweight," citing lower offtake and realisation. Glenmark Pharmaceuticals Ltd fell 2.3 percent after the division bench of Delhi High Court restricted the company from manufacturing Zita and Zita-Met.