Indian shares shed one percent on Monday, a day before the general election for the national parliament starts, with investors worried about whether or not the next government will speed up market-friendly reforms.
The 30-share Mumbai Stock Exchange benchmark index fell 1.04 percent to 5,800.54 points, retreating from highs last week not seen since the government flooded the market with around $3 billion worth of shares in state-run companies in early March.
"There is a certain amount of buyer fatigue after the recent listings, and there is also some uncertainty with regard to the elections and the monsoon," said Shankar Char, a head of institutional sales at Cholamandalam Securities.
"So investors are holding on to their normal positions and not over-extending them," he said.
While quarterly earnings and guidance have been good to better-than-expected so far, investors are looking to the election and what is forecast to be a "near normal" monsoon for cues, he added.
India's parliamentary election, which runs from April 20 to May 10, is expected to return the Bharatiya Janata Party-led coalition to power. But doubts remain over its margin of victory, which will determine the pace of reforms and economic growth.
The run-up to the election has also been marred by accidents and sporadic instances of violence. Tuesday's voting will take place in 13 of the 29 states.
"The index will remain volatile and range-bound, with a sustained upward movement possible only beyond the 5,950-level," Char said.
Index heavyweight Reliance Industries Ltd slipped 2.2 percent to 552.45 rupees, and other industrials fell despite expectations of strong demand in India's bustling economy. Grasim Industries Ltd, the No 3 cement producer, fell 2.5 percent to 1,143.50 rupees. Tata Motors Ltd, the biggest vehicle maker, dropped 3.5 percent to 487.75 rupees.
Tata Iron and Steel Co, the second-largest steel maker, shed one percent to 391.45 rupees, while power equipment maker Bharat Heavy Electricals Ltd slid 4.3 percent to 612.30 rupees.