With trade optimism bringing some cheer, Indian markets posted their third consecutive annual gain in 2018 and outperformed most Asian indexes, according to Refinitiv data. However, global stock indexes ended in the red for the year. This year is expected to be a crucial one for India as it heads into a general election that must be held by May. "We're looking at a flattish market with a target of 10,400 - 11,000 for Nifty in the first six months. There is uncertainty with respect to global liquidity," said Dhananjay Sinha, head-Institutional Research, Economist and Strategy at Emkay Global Financial Services.
The Reserve Bank of India has given a fair and positive view in its financial stability report, he added. The central bank said on Monday the proportion of commercial lenders' non-performing assets may fall slightly to 10.3 percent by March, thanks to measures including the creation of a bankruptcy code.
Metal stocks, which were hit through 2018 on trade war concerns, also fell. Hindalco Industries Ltd and JSW Steel Ltd were down about 1 percent each. Sales data for automakers such as Maruti Suzuki India Ltd disappointed investors, sending the stock down 0.5 percent.