The benchmark BSE index Sensex was trading down by nearly 120 points as traders remained wary ahead of IIP and inflation data due later in the day. Also, weak Asian cues dampened the trading sentiment.

At 11.20 a.m., the 30-share BSE index Sensex was down 120.05 points or 0.38 per cent at 31,142.01 and the 50-share NSE index Nifty was down 36.55 points or 0.38 per cent at 9,631.70.

Among BSE sectoral indices, capital goods index fell the most by 0.93 per cent, followed by banking 0.57 per cent, power 0.33 per cent and FMCG 0.27 per cent. On the other hand, realty index was up 0.99 per cent, healthcare 0.54 per cent, metal 0.3 per cent and oil & gas 0.23 per cent.

Top five Sensex gainers were Sun Pharma (+1.94%), GAIL (+1.19%), M&M (+0.99%), Tata Steel (+0.71%) and ONGC (+0.44%), while the major losers were Wipro (-2.84%), L&T (-1.6%), Reliance (-1.16%), Adani Ports (-1.1%) and ICICI Bank (-0.93%).

Profit-booking by participants paced up ahead of key macro data — index of industrial production (IIP) for April and consumer price index-based inflation for May are slated for release after market hours today.

A depreciating rupee against the dollar also weighed on the domestic sentiment, traders said.

Asian stocks edged lower early on Monday following a slide by US technology shares and the dollar rose ahead of this week's US Federal Reserve policy meeting, with markets hoping for more guidance on the central bank's interest rate path.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 per cent following a mixed day Friday on Wall Street where the Nasdaq slid 1.8 per cent on tumbling technology shares but the Dow closed at yet another record high. MSCI's Asia-Pacific index was still in reach of a two-year high scaled late last week.