33 stocks in the Nifty 50 were trading in the red. L&T, Aurobindo Pharma, Coal India, BPCL, ONGC, Adani Ports, Bosch, Indiabulls Housing Finance and IOC were among the top Nifty losers - down between 1.9 per cent and 3.5 per cent. However, losses were curbed due to some buying witnessed in SBI, Mahindra & Mahindra, Tech Mahindra, TCS, Axis Bank and Ambuja Cements, which were trading up between 1.2 per cent and 2.65 per cent in morning trade.
The BSE Sensex had gained 95.75 points in the previous two sessions.
The GST Council on Friday provided some relief to several sectors by slashing tax rates on a host of consumer items - from chewing gums to detergents - to 18 per cent from the current 28 per cent. The Council, headed by Finance Minister Arun Jaitley, also trimmed the list of items in the top 28 per cent tax rate category to 50.
Industrial production grew at a slower pace of 3.8 per cent in September, mainly due to subdued performance of the manufacturing sector coupled with contraction in output of consumer durables, data released by the Central Statistics Office (CSO) showed last Friday. Factory output measured in terms of the Index of Industrial Production (IIP) rose 5 per cent in September 2016 and 4.5 per cent in August this year.
Equities in the other Asian markets were trading lower in cautious trade as investors looked to see whether US Republicans can hammer a tax reform deal quickly. Tokyo's benchmark Nikkei dropped 0.7 per cent, bringing down MSCI's Asia-Pacific Index 0.4 perc ent. Excluding Japan, shares in the region were down just 0.05 per cent, with mainland Chinese shares rising 0.6 per cent to two-year highs.
At 10:30 am, the NSE Nifty was trading 36.60 points, or 0.35 per cent, lower at 10,285.15, while the BSE Sensex shed 74.47 points to trade at 33,240.09.
(With agency inputs)