Indian shares opened down with 50-share Nifty index slipping below key 5,900 support level on renewed concerns over US fiscal issues after Republican leaders failed to muster enough support for a proposal to avert automatic spending cuts and tax increases set to start in January.
The Bombay Stock Exchange's Sensex index fell 59.37 points to open at 19,394.55 while the National Stock Exchange's Nifty-50 index declined 28.40 points and opened at 5,888.
On the global front, US stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.
The Dow Jones industrial average dropped 98.99 points to 13,251.97. The S&P 500 lost 10.98 points to 1,435.81. The Nasdaq Composite fell 10.17 points to 3,044.36.
Asian markets extended loses in late morning trades. China's Shanghai Composite declined 0.4% to 2,159, Hong Kong's Hang Seng was down 0.77% to 22,484, Singapore's Straits Times declined 0.3% to 3,166 while Japan's Nikkei fell 0.24% to 10,0146.
The MSCI Asia Pacific index outside Japan fell 1.2% to 886.16.
Back home, all sectoral indices are trading down with metal, real-esate power, fast moving consumer goods indexes leading the fall on BSE.
Among key Sensex stocks, the laggards include Tata Motors and Hero MotoCorp falling 2% and 1%, Bharti Airtel dropped 1%, ITC declined 0.6% and Hindalco and Sterlite Industries declined 0.5% and 0.3%. Among gainers Sun Pharmaceuticals rose 0.6%, HUL gained 0.5% and HDFC rose 0.2% on BSE.
The BSE mid-cap and small-cap declined 0.5% and 0.3%.
The overall breadth is negative as 546 stocks declined while 328 stocks advanced on the BSE.