All the sectorial indices on BSE were in the red. The market breadth was weak. 24 of the 30 stocks from the Sensex pack declined, brokers at Bombay Stock Exchange said. There was sustained bull liquidation by Foreign Institutional Investors (FII's) in view of weak advice from global markets, the Sensex drifting lower at 17,541.17 points at this morning session with a major loss of 225.46 points from it last finish, brokers said.
Asian markets, which opened before Indian markets, were trading lower. US stocks dropped yesterday, as the credit crunch surfaced unexpectedly in the municipal bond market and after the Federal Reserve Chairman Ben Bernanke said that he sees sluggish economic growth ahead.
Later, the 30-share BSE Sensex was down 80.54 points or 0.46 per cent at 17,686.09. Sensex lost 321.58 points at the day's low of 17,445.05, hit in early trade.
The broader CNX S and P Nifty index of NSE was down 31.75 points or 0.61 per cent at 5170.25.
The BSE Mid-Cap index was down 0.64 per cent at 7,404.90, while the BSE Small-Cap was down 0.41 per cent at 9,368.97.
Reliance Industries fell 0.90 per cent at Rs 2492, followed by ICICI Bank by 1.11 per cent to Rs 1149.40, Larsen&Toubro by 2.35 per cent to Rs 3423.30, DLF by 2.52 per cent to Rs 843.50, Infosys Technologies by 2.41 per cent to Rs 1510, Bharat Heavy Electricals by 2.20 per cent to Rs 2183, Satyam Computer by 1.76 per cent to Rs 430.70 and Reliance Communication by 1.44 per cent to Rs 600.95, edged lower.
Among the Sensex gainers, Bajaj Auto was up by 2.26 per cent to Rs 2122.50 followed by Hindalco Industries by 1.53 per cent to Rs 166.25, ONGC by 1.19 per cent to Rs 1037.90, Hindustan Unilever by 0.64 per cent to Rs 204.55 and Cipla by 0.22 per cent to Rs 180.70.
Anil Dhirubhai Ambani Group firm Reliance Power fell 0.28 per cent to Rs 369 on volume of 14.04 lakh shares on BSE.
Asian markets were weak. Key indices in Hong Kong, Japan, Taiwan, South Korea, Singapore and China were down by 0.27 per cent to 1.77 per cent.
The Dow Jones industrial average plunged 175.26 points, or 1.40 per cent to 12,376.98 on February 14. The Standard and Poor's 500 index slipped by 18.35 points, or 1.34 per cent to 1,348.86, and the Nasdaq composite index dropped by 41.39 points, or 1.74 per cent to 2,332.54, which affected to downward trend at the Indian bourses, brokers added.