The market breadth was negative with 850 stocks advancing, 1,800 declining and 76 remaining unchanged.

Among gainers on the Sensex were TCS, up 6.02 percent at Rs.538.85; Wipro, up 2.8 percent at Rs.512.85; Infosys, up 2.2 percent at Rs.2,086.80, and Tata Power, up 2.12 percent at Rs.1,251.30.

Prominent among the losers were M&M, down 9.12 percent at Rs.758.10; ACC, down 6.52 percent at Rs.809.95; Hero Honda, down 3.8 percent at Rs.1,425, and Hindustan Unilever, down 3.48 percent at Rs.260.45.

According to data with the regulator, the Securities and Exchange Board of India (SEBI), foreign institutional investors sold shares worth $176.8 million Monday.

In other Asian markets, the Nikkei 225 Stock Average, a key index of the Tokyo Stock Exchange, broke its 10-month high to close at 10,524.26 points, up 112.17 points.

Better than expected job loss data from the US and a rise in Japanese machinery orders in June helped the benchmark index rise.

The Hang Seng, the primary index of the Hong Kong Stock Exchange, also shut shop in the green at 20,929.52 points, up 554.15 points.

Futures of key US stock indexes were trading lower, pointing to a lower opening by the main indices, after rising for more than four weeks.