Markets continued to languish in noon trades with weakness noticeable in IT and metal shares. The Sensex is down 167 points at 18,451. Nifty is down 51 points at 5,616.
In Asia, meanwhile, markets slipped into red with the Shanghai Composite and Hang Seng declining 1.2% each. Nikkei however added 2% to 8829.
"The surge in flows from July to October was followed by a relative decline in the last couple of months. The medium-term outlook for FII inflow stays positive stemming from the low yields in the developed world and the relative attraction of Indian equities" said Anand Shanbhag, Executive Director and Head of Research, Avendus Securities.
The rupee fell by 12 paise to 55 against the American currency in the late morning trade on sustained dollar demand from banks and importers amid weakness in local equities.
BSE IT index has slipped 1.7% at 5646. Metal, healthcare, oil & gas and auto shares also declined 1% each.
Among individual stocks, Bharti AIrtel has added 3.7% at Rs 293 after winning bids in the second-generation (2G) mobile-phone airwaves auction process. Hindustan Unilever and Gail India are the other gainers. On the other hand, Jindal Steel has slipped 2.7% at Rs 367. Tata Steel, Hindalco, Wipro and Infosys have shed 2-3% each.
Reliance Industries Ltd, the owner of world's biggest refining complex in Gujarat, fell over 1% on reports company reported a further decline in natural gas production from its eastern offshore KG-D6 fields.
BSE market breadth is negative. Out of 2,647 stocks traded, 1,641 stocks have declined while 916 stocks have advanced.
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