The BSE Sensex is down 0.4 per cent, while the broader NSE Nifty is 0.41 per cent lower, retreating for a third day from record highs hit on Friday.
Sentiment weakens as foreign investors sold index futures, worth 11.70 billion Indian rupees ($193.21 million) over the previous two sessions.
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MARKETS: EARLY TRADE
The benchmark BSE Sensex recovered over 45 points in early trade today on emergence of buying by funds and retail investors in select stocks on encouraging earnings amid a firming trend overseas.
The 30-share barometer, which had lost almost 245 points in the previous two sessions, rose 45.03 points, or 0.20 per cent, to 22,676.64 on the back of recovery in healthcare, tech, consumer durables and oil & gas sector stocks.
Similarly, the broad-based National Stock Exchange index Nifty, gained 13.40 points, or 0.20 per cent, to 6,774.65.
Brokers said selective buying by participants on the back of encouraging earnings announced by some companies and a firming trend in the global markets helped sentiments to improve.
Stocks of Idea Cellular rose 2.59 per cent to Rs 144.40 after the company yesterday posted over 91 per cent jump in consolidated net profit at Rs 589.77 crore for the last quarter of 2013-14.
Bharti Airtel also found buying support and gained 0.18 per cent to Rs 338.50 ahead of its fourth quarter results to be announced today.
Meanwhile, among other Asian markets, Hong Kong's Hang Seng was up 0.18 per cent in early trade today, while Japan's Nikkei remained closed for a public holiday.
The US Dow Jones Industrial Average ended 0.53 per cent higher in yesterday's trade.