The benchmark BSE Sensex on Monday fell by 31 points to close at one-and-a-half month low of 27,319.56 amid mixed cues of a sharp decline in industrial production in October and zero level inflation in November, completing three days of losses.
Traders said rupee nearing 63-level also weighed heavily on investors. The domestic currency lost 65 paise to end the day's trading at 62.94 against the greenback.
Reacting to IIP data that came after close of market hours on Friday, the 30-share BSE index nosedived by over 245 points in early trade. Markets, however, saw buying picking up after the news of zero level inflation came in raising hopes of a rate cut by the Reserve Bank of India.