The NSE 50-share closed up 15.90 points, or 0.18 per cent, at 8,708.95.
Dealers attributed the fall to the persistent lure of the US currency and the dollar's strength against other currencies overseas.
Over the past week, the Sensex and the Nifty recorded gains by rising 403.58 points, or 1.45 per cent, and 109.65 points, or 1.27 per cent, respectively.
The entities, which were barred from the securities market, have now been given certain relaxations, including permission to deal in government securities and invest in ETFs (exchange-traded funds).
The companies are: Marine Cargo Company, Ambuja Zinc, Hitesh Textile Mills, Manav Pharma, Sequel Soft India, Shree Yaax Pharma & Cosmetics, Rusoday & Company and Sterling Kalks and Bricks.
The rupee fell to a one-week low against the dollar, as the greenback was boosted by a fall in the euro.
The benchmark BSE index closed down 0.19 percent at 28,077.18, but ended up 1.46 percent for the week
The RBI on Thursday fixed the reference rate for the dollar at 66.7145 and euro at 73.2125.
The Nikkei rose 0.9 percent to 17,156.32 in mid-morning trade, after hitting as high as 17,167.91 earlier, the highest level since May 31.
The 50-share NSE Nifty shed some ground to settle at 8,699.40 points, up 40.30 points, or 0.47 per cent.
Mixed trend in global markets failed to cheer up the domestic sentiment.
Rupee gains 15 paise on fresh bout of dollar selling by exporters and banks.
Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) "surrendered" these as they could not develop them because of huge overhead cost and uneconomic size.
The reverse repos is a process by which central banks purchase securities from banks with an agreement to sell them back in the future, according to reports.
A lower industry number means the US Fed may have to tread cautiously on the interest rate front.
ICICI Bank was the biggest gainer and its share price jumped 6.9 per cent on Monday, adding Rs 9,771 crore to its market valuation.
Barring banking, all sectors ended lower with auto, capital goods and realty closing down by up to 2.12 per cent
There were more than 2 lakh applications for the fifth tranche of SGB. The government proposes to come up with more tranches in 2016-17.
The exchange said non-submission or delay in submitting the report by December 31 will be treated as non-compliance.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
On Friday, the rupee had staged a smart recovery from its three-week low against the US currency to close up by 23 paise at 66.71 on heavy corporate dollar sales as well as easing inflationary pressure.
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Gold prices slipped on Friday following subdued demand from stockists and investors mainly on a turnaround in international markets.
The rupee had lost 41 paise, its biggest one-day fall in over three months, to close at fresh three-week low of 66.94 against the dollar on Thursday.
Infosys stock fell 2.34 per cent even as the company reported a 6.1 per cent rise in its second quarter net profit but cut its annual revenue growth forecast for the second time in three months on an "uncertain business outlook".
The Sensex opened lower and stayed in the negative zone to hit a low of 27,563.84 points before settling 439.23 points, or 1.56 per cent down at 27,643.11, its lowest closing since July 11.
The volume of trade should improve as GDP for BRICS is expected to increase to 5.7 per cent in 2017, an improvement over the previous forecast of 5.3 per cent.
In the July-September quarter last year, the investments stood at USD 3.41 billion spread across 156 deals.
Analysts attributed the rebound in gold prices to a firm trend overseas and increased buying by jewellers at domestic spot market to meet the wedding season demand.
On Monday, the rupee had gained 15 paise to end at 66.53 against the American currency on hopes of more foreign capital inflows.
"Nifty PAT (profit after tax) is likely to grow by 6 per cent year-on-year in the second quarter of 2016-17 – the highest in eight quarters," said a report by brokerage Motilal Oswal.
Rest went to those who sold their shares in first half.
In the Asian region, Japanese and Hong Kong and Taiwanese financial markets are closed for holidays.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity fell by Rs 80 each to Rs 30,240 and Rs 30,090 per 10 grams, respectively.
Tata Steel had clocked sales of 2.33 MT in the same quarter of 2015-16 fiscal, it said in a regulatory filing.
Analysts said the rise in global market prices influenced the precious metal prices in futures trade.