However, buying in M&M, Tata Power, RIL & L&T limited those losses to major extent.
The 50-share NSE Nifty touched an intraday low of 5,200.95, before closing at 5,210.40, down 0.74 pc or 39 points.
The 30-share BSE Sensex fell 104.20 points or 0.59 pc, to settle at 17,422.51, after seeing day's low of 17,392.55.
Wipro, TCS, Infosys Technologies, M&M, Tata Power and L&T were amongst the top gainers of the day.
DLF, Reliance Communications, Tata Steel, Sterlite Industries and ICICI Bank were amongst the top losers of the day.
Nifty slips in red; metal, banks, FMCG down
At 01:01 pm, the Nifty slipped marginally in the red. Selling pressure was seen in realty, metal and bank stocks.
The Sensex was down 13.73 points or 0.08 pc at 17512.98, and the Nifty was down 14.05 points or 0.27 pc at 5235.35.
About 1615 shares advanced, 1324 shares declined, and 150 shares were unchanged.
In the largecap space, heavy buying was seen in IT stocks. Wipro, TCS and Infosys were up 4 pc each.
On the losing side, Sterlite Industries, SBI, ICICI Bank, Hindalco and BHEL were down 1.7-2.7 pc.
Top gainers on the BSE Midcap were Thermax, Dish TV India, Sterlite Technologies, M&M Financial and Texmaco were up 5-8 pc.
Top losers on the BSE Midcap were Essar Shipping, Balrampur Chini, Aban Offshore, MTNL and IndiaBulls Power were down 2-3.5 pc.
Nifty up on positive Nov IIP data; TCS, Infy gain
At 12:00 am, the Nifty turned positive with marginal gains on the back of higher than expected Nov IIP data.
Among the other largecaps, Reliance Industries, IDFC, Tata Power, L&T, M&M, Tata Motors and BPCL were also supporting the markets.
However, continuous selling in metal, banking, power, FMCG and select realty stocks along with ONGC and BHEL capped the gains to some extent.
The 30-share BSE Sensex was trading at 17,561, up 34 points and the Nifty was at 5,256, up 7 points.
Among the broader indices, the BSE Midcap Index was up 0.5% and the Smallcap was up 1%.
About 1,856 shares advanced while 1085 shares declined on the BSE. Nearly 143 shares were unchanged.
TCS, Infosys, Wipro, HCL Tech were gainers while SBI, ICICI, Kotak Mahindra, Sterlite Industries, SAIL, NALCO, Hindalco were losers
Nifty opens flat; banks, metals dip
The Nifty started the day on a flat note. Buying in technology stocks was supporting the markets.
At 9:03 am, the Nifty was trading at 5,243.80, down 5.6 points and Sensex was trading at 17,523.32 down 3.39 points.
The CNX Midcap rose 20 points to 7,703. About 605 shares advanced while 202 shares declined on the NSE.
Among the frontliners, Reliance Industries, NTPC and Bharti Airtel were the gainers.
HDFC Bank, ICICI Bank, HDFC, Sterlite Industries, SAIL, ITC, L&T and Tata Steel were the losers.
Asian markets were trading lower. Hang Seng, Kospi and Taiwan Weighted fell 0.5 pc each.
Nikkei and Straits Times were marginally in the red while Shanghai was up just 0.13 pc.