MUMBAI: Indian shares were flat on Monday as the quarterly reporting season kicked in, with investors concerned that the government's move to ban high-value notes would hit corporate earnings.
Software bellwether Tata Consultancy Services Ltd is due to report results on Thursday, while rival Infosys Ltd will do so on Friday.
Investors are also awaiting the annual budget due on Feb. 1, while the country gears up for a slew of state elections, notably in Uttar Pradesh, India's most populous state.
"Markets are oscillating in a narrow range because budget movements have already started taking place, and with upcoming state elections people are expecting populist measures," said Saurabh Jain, assistant vice-president of research at SMC Global Securities.
"Earnings are expected to show negative growth in the bottomline and I expect the effects of demonetisation to carry forward into the next fiscal year."
The broader NSE Nifty was down 0.03 percent at 8,241.35 as of 0719 GMT
The benchmark BSE Sensex was 0.04 percent lower at 26,748.02.
Recent outperformer Dr. Reddy's Laboratories Ltd led the decliners with a 3.2 percent drop, after having gained 5.4 percent over the previous two weeks.
Among the gainers, Aurobindo Pharma was up 1 percent, after earlier rising as much as 4.32 percent, following approval from the U.S. FDA for its generic treatment for seizures.
BEML Ltd surged nearly 20 percent, hitting its highest since Jan. 15, 2016, after the heavy vehicle and railcar maker said on Friday that the government would divest 26 percent in the company.