Negative global market cues and profit taking pushed both Sensex and Nifty lower for the first time in four days
MSCI's broadest index of Asia-Pacific shares outside Japan was just slightly higher by mid-afternoon after trading in the red following a mixed session on Wall Street.
Stock market Live: The Nifty Realty rose nearly 3 per cent, while Nifty IT was up 1.6 per cent
As Hong Kong markets came off a holiday, Evergrande's shares surged 30% to mark their best day.
Evergrande's shares surged 23% on Thursday after a unit said on Wednesday, when the Hong Kong market was closed for a holiday, that it had "resolved" a coupon payment on an onshore bond.
Singapore-traded FTSE China futures are about 2% below Friday's closing level. Safe-haven assets such as the yen and U.S. Treasuries rose slightly in morning trade.
By Tom Westbrook and Anushka Trivedi
Asian markets were jittery in volumes thinned by public holidays in China, Taiwan and South Korea
European shares also looked set to rise on opening with pan-region Euro Stoxx 50 futures up 0.61% and FTSE futures 0.41% higher.
Evergrande's own shares dropped 8.2% on Thursday and have plunged more than 80% this year.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.82%, extending earlier losses after the release of the Chinese data
Japanese shares have been on a tear as hopes for fresh stimulus from a new Prime Minister saw the Nikkei surge 4.3% last week
Top Nifty gainers included Kotak Mahindra Bank, Powergrid, Grasim and BPCL, among others
Investors looked to lock in gains after the recent rally but most dips were bought into, which left indices unchanged at close.
The domestic benchmark indices extended their gains to the third day in a row on Monday
Investor wealth rose by Rs 3.6 trillion on the BSE today, taking m-cap of all listed BSE companies to Rs 247.34 trillion
Investors are mostly waiting for the Federal Reserve's Jackson Hole symposium on Friday and what central bank chair Jerome Powell might say about U.S. tapering monetary stimulus
The Nifty IT index put up a strong show with a 0.7 per cent gain while the Nifty Realty index slipped 0.8 per cent.
The rapid spread of the infectious Delta variant and low vax rates have caught much of the region off-guard, especially in emerging markets, even as economies in Europe and North America reopen
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.73%, snapping five successive sessions of decline