The BSE Sensex falls 0.42 percent, while the Nifty is down 0.43 percent, heading for their sixth day of falls in seven.
Asian shares were slowly giving ground on Monday as strains in emerging markets show little sign of abating, while growing pressure for another policy easing in Europe shoved the euro to 10-week lows.
Blue chips fall on continued worries about emerging markets risk aversion. ICICI Bank (ICBK.NS) falls 1.3 percent while ITC Ltd (ITC.NS) is down 0.6 percent.
Telecom shares fall ahead of mobile spectrum auction. Bharti Airtel Ltd (BRTI.NS) falls 2.5 percent while Idea Cellular Ltd (IDEA.NS) loses 1.7 percent.
Also weighing on the sentiment, Overseas investors sold Indian shares worth $104.2 million on Friday, provisional exchange data shows.
However, Lupin Ltd (LUPN.NS) gains 2 percent ahead of its December-quarter results later in the day.