India's markets continued to show a muted reaction to the 2012/13 budget on Monday, with analysts overwhelmingly concluding the government took a safe approach that lacked fireworks.
Worries remain about a lack of clear road map on the fiscal front, with a higher-than-expected borrowing for the next fiscal year raising worries about the timing and magnitude of interest rate cuts from the Reserve Bank of India.
Traders are also keenly awaiting cues on Q4 earnings emerging out of advance tax numbers and foreign investor flows after FII showed net purchases of 8.83 billion rupees on the day of budget.
"Markets have rallied backed due to strong FII inflows but the fundamental support is missing for the rally to continue," said brokerage Macquarie in a report on Friday.
As of 0554 GMT, the main 30-share BSE index was down 0.5 percent, while the 50-share Nifty index lost 0.5 percent.