The Sensex resumed lower at 20,857.85 and hovered in a range of 20,907.39 and 20,826.73 before quoting at 20,874.98 at 1030hrs, showing a loss of 23.03 points or 0.11 per cent from its last close.
The NSE 50-share Nifty also moved down by 2.80 points or 0.05 per cent to 6,215.05 at 1030hrs.
Major losers were Dr Reddy's Lab 1.20 pct, NTPC 1.05 pct, HDFC 0.97 pct, M&M 0.57 pct and ITC 0.53 pct.
The Reserve Bank of India (RBI) said that based on preliminary figures, India's current account deficit (CAD) narrowed sharply to USD 5.2 billion or 1.2 pct of GDP in Q2 September 2013, from USD 21 billion or 5 pct of GDP in September 2012.
Asian stocks fell for the first time in eight days in their early trade after stronger US manufacturing data boosted speculation the Federal Reserve may pare stimulus sooner than anticipated.
Key benchmark indices in China, Indonesia, Hong Kong, Taiwan and South Korea were down 0.08 pct to one pct while indices in Japan and Singapore rose 0.04 pct to 0.53 pct.