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Indian shares closed mostly unchanged Monday, though they recovered from a more than one-month low hit earlier in the session as gains in heavyweights Reliance Industries and IT stocks offset losses in metal stocks.

The Nifty 50 index ended mostly flat at 19,434.55, while the S&P BSE Sensex closed up 0.12% to 65,401.92. Earlier in the session, the indexes fell nearly 1% to their lowest in over a month.

The India volatility index hit its highest since late May.

Metal stocks were the top drag on worries over top consumer China's economic growth, falling 2.1%, while heavyweight IT stocks rose 0.7%.

Nifty heavy-weight Reliance Industries gained 1.2%.

"Investors saw this (dip) as a buying opportunity, given India's attractive growth prospects," said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors.

"However, we don't see any runaway moves unless there is a global risk on trade again."

Market participants eye domestic retail inflation print due at 5.30 p.m IST, which likely accelerated to 6.40% in July on surging food prices, breaching the upper end of the Reserve Bank of India's tolerance band for the first time in five months.

Meanwhile, the Indian rupee fell below 83 to the U.S. dollar for the first time since October 2022, as a jump in U.S. yields pressured Asian currencies, but likely intervention by the RBI trimmed losses. [INR/]

Among individual stocks, Adani Ports fell 2.1% after its auditor Deloitte resigned, amid concerns over certain related party transactions. Shares of Adani Group's flagship company Adani Enterprises fell 3.7%.

India's market regulator on Monday sought 15 more days to complete a probe into Adani's dealings with some offshore entities.

India's equity, currency and bond markets will be closed for a holiday on Tuesday.