The Sensex closed at 17864, down 68 points and the Nifty fell 20 points to 5341, as per provisional data.
The sell-off in capital goods, power, banking & financial, cement and select auto companies' shares dragged the Nifty below 5350 level.
On the other side, FMCG, realty, technology and metal (barring Sterlite) companies' shares along with Reliance Industries, Hero Honda, Sun Pharma, Bharti, Idea and Siemens witnessed buying interest.
Sensex trading in narrow range; RIL, TCS gain
At 12:42 pm, the 30-share BSE Sensex was trading in a narrow range around its previous closing value.
The Sensex was trading at 17954, up 22 points and the Nifty was at 5366, up 4 points.
The broader indices were outperforming the benchmark indices; the BSE Midcap Index was up 0.2 pc and Smallcap up 0.7 pc.
About 1828 shares advanced while 1131 shares declined on the BSE. Nearly 280 shares were unchanged.
Reliance Industries, SAIL, TCS, Tata Steel, ITC, HUL, Infosys, HDFC Bank, Hero Honda, Hindalco, Sun Pharma, Bharti and Reliance Infrastructure were the positive contributors on the Nifty.
However, ONGC, NTPC, L&T, GAIL, Sterlite Industries, Wipro, BHEL, ICICI Bank, SBI, Tata Motors, Kotak Mahindra Bank, Tata Power and Reliance Communications were the negative contributors.
Sensex southbound; Wipro, ONGC dip
At 10:12 am, the benchmark Sensex was trading with negative bias. Banking and financial stocks were witnessing selling pressure.
The Sensex was trading at 17875, down 57 points and the Nifty was at 5341, down 20 points.
The market breadth was positive; about 688 shares advanced while 537 shares declined on the NSE.
NTPC, L&T, Sterlite Industries, Wipro, ONGC, BHEL, Cipla, Tata Motors, Tata Power, Jaiprakash Associates, Power Grid, ITC, DLF and Infosys were other losers in trade.
However, Reliance Industries, TCS, Sun Pharma, HUL, Bharti, Maruti, Siemens, Hero Honda, Idea, Hindalco, HDFC Bank, Unitech and Reliance Infrastructure were supporting the markets.
Nifty volatile in early trade; HDFC, Infy dip
The benchmark Nifty started the day on a positive note and immediately turned extremely volatile due to lack of Asian cues.
At 9:02 am, the Sensex was trading at 17966, up 31 points and the Nifty was at 5367, up 6 points.
The CNX Midcap rose 16 points to 7997. About 486 shares advanced while 139 shares declined on the NSE.
Among the frontliners, Bharti Airtel, Maruti, ACC, Sun Pharma, ACC, Hindalco, Ranbaxy Labs, Reliance Infrastructure, HUL and ICICI Bank were seeing buying interest.
However, Tata Motors, Kotak Mahindra Bank, M&M, GAIL and HDFC were losers in trade.
Asian markets were mixed in trade. Nikkei and Jakarta gained 1 pc each while Shanghai fell 0.16 pc and Kospi lost 0.7 pc. Hang Seng, Straits Times and Taiwan were flat.