The markets also saw consolidation for the second day.
The losses were marginally capped by buying in oil & gas exploration, select telecom, metal and power stocks.
The 30-share BSE Sensex shut shop at 17,615.72, down 85.41 points or 0.48 per cent and the 50-share NSE Nifty fell 0.35 per cent or 18.70 points, to close at 5263.10.
The broader indices ended mixed. While the BSE Midcap closed flat, Smallcap surged 0.67 per cent continuing its uptrend for tenth session.
After gaining in the previous session, pharma stocks saw profit booking on Thursday, Jan 7. IT stocks reeling under pressure ahead of the Infosys' third quarter numbers.
Auto stocks also witnessed profit booking while the rise in crude prices put pressure on the oil marketing companies.
Nifty extends losses; Tata Motors, TCS, SAIL dip
Trading amid volatility, Nifty extended losses. Sell-off continued in technology, auto, capital goods, realty, select banking and pharma stocks.
However, oil & gas exploration, telecom and metal (barring SAIL) stocks were trading amid the positive side. HDFC Bank, Axis Bank, ACC, Reliance Infrastructure and HUL were among the other gainers.
At 12: 15 pm, BSE Sensex was trading at 17,596, down 104 points and the Nifty was at 5,253, down 28 points.
The largecap gainers were Hindalco and Cairn India up 2 per cent each, GAIL, Bharti Airtel, Reliance Industries, ACC and Reliance Communications up 0.7 to 1 per cent.
Declining by 2 to 3 per cent, Tata Motors, TCS, Jaiprakash Associates, SAIL, BPCL, Wipro and Grasim were the losers.
BF Utilities, Sobha Developer, GMDC, Wockhardt and KGN Industries rose 4 to 5.6 per cent while Indiabulls Financial, Pidilite Industries, Mphasis, Essar Shipping and Indiabulls Real slipped 2.6 to 3.3 per cent in the midcaps.
The smallcap gainers were Kothari Product surged 15.8%. Prime Securities, Dolphin Offshore, Money Matters and VIP Industries were up 8.5 to 10.4 per cent.
However, Electrotherm, Hexaware Tech, Websol Energy, PVP Ventures and Gujarat Ind Power dipped 3 to 4 per cent.
1: 49 PM
Nifty rangebound; IT, FMGC reel under pressure
Nifty is continued to see rangebound trading for the second day. Technology, auto (barring Maruti), power and FMCG stocks were seeing selling pressure, while SAIL, SBI, ICICI Bank, BHEL and Grasim were among the other losers.
However, the losses were limited by buying in shares of oil & gas exploration, telecom, cement and realty.
Among the other gainers were Hindalco, Sterlite, HDFC Bank, Maruti, Ranbaxy and Reliance Infrastructure.
At 10: 10 am, BSE Sensex was trading at 17,663, down 37 points and NSE Nifty was at 5,274, down 7.65 points. The BSE Midcap Index was up 0.2 per cent and the Smallcap was up 0.65 per cent.
Hindalco and Cairn India up 2.22 per cent, ACC, Reliance Communications, Bharti Airtel, Reliance Infrastructure and GAIL up 1.2 to 2 per cent were the top gainers.
On the losing side were Tata Motors was down 2.28 per cent and M&M down 1.62 per cent.
Ahead of Infosys Q3 numbers on Jan 12, Technology stocks like Wipro, TCS and Infosys fell 1.2 to 2 per cent.
Wockhardt, Carborundum, BF Utilities, Peninsula Land and KGN Industries were the midcap gainers, up 3.6 to 4.5 per cent while Gujarat NRE Coke, Mphasis, Indiabulls Financial, Essar Shipping and Rashtriya Chemical dipped 1.9 to 3 per cent.
Among the smallcaps, JK Paper, Bombay Dyeing, OM Metals Infra and Stride Arcolab gained 8 to 9.4 per cent. Aditya Birla, Ushdev Int, Electrotherm, Garware Offshore and Rollatainers fell 2 to 5 per cent.
11: 31 AM
Sensex opens flat on quiet global trade
Quiet trade on the global front has led to the Sensex opening flat and under consolidation. Banking, auto and select power stocks were under pressure.
However, metal, telecom and oil & gas exploration companies' shares were trading in the positive side.
At 9:02 hours IST, BSE Sensex was trading at 17,667, down 33 points and NSE Nifty was at 5,274, down 7 points. The CNX Midcap gained 20 points at 7,676.
Hindalco, Ranbaxy Labs, SAIL, HCL Tech, Bharti Airtel, Ambuja Cements, Reliance Communications, Sterlite Industries, Cairn, L&T, Tata Motors, Maruti and Reliance Industries were the frontliners seeing buying interest.
Tata Power, Wipro, ICICI Bank, PNB, HDFC, SBI, M&M, BPCL (rise in crude prices to $ 83/bbl) and IDFC were the early losers.
In the midcap and smallcap arena, Strides Arcolab was up 12 per cent, Wockhardt gained 4 per cent, Clutch Auto surged 10 per cent, Astec Lifescience and Biocon went up 1 per cent each.
Bajaj Hindusthan, Simbholi Sugar and Rana Sugars rose 2.5 to 4 per cent.
On the losing side was DB Corp down 1 per cent after 25 per cent rally on first day of trade.
9: 49 AM