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At 2:15PM,Sensex is trading with a loss of 220 points at 26,347 while Nifty is down by 70 points at 7,875.
In the broader market, BSE Mid cap and Small Cap are marginally down between 0.1-0.2%.
Market breadth continues to remain weak with 1528 declines against 1173 gains.
Meanwhile, along with an upvote given by World Bank to the Indian economy by raising the growth forecasts to 6.4% for the year 2015-16 HSBC Services Purchasing Managers' Index (PMI), compiled by Markit also rose to 51.6 in September from 50.6 in August, reversing a slowdown seen in the previous two months.
Rupee is trading higher at 61.34 against US Dollar versus previous close of 61.61. Forex dealers said besides increased selling of the American currency by exporters and banks, the dollar's weakness against other currencies overseas also supported the rupee, but a lower opening in the domestic equity market limited the rise.
Global Markets
With Bank of Japan's Chief allaying fears about the negative impacts of the weak Yen, Japanese stocks regained the lost ground though caution among investors regarding bank's policy decision later in the day kept Nikkei suppessed.
Nikkei is trading with a loss of 107 points at 15,783.
The BOJ is widely expected to maintain its massive monetary stimulus programme and offer a bleaker view on factory output, after signs that Japan's economy was hit harder than expected by a national sales tax increase in April.
Hong Kong shares rose for a third straight day on Tuesday, with investor confidence recovering as the city's pro-democracy demonstrations calmed down.
Hang Seng is trading with a gain of 107 points.
Shanghai stock exchange is closed on October 7, 2014 on account of seventh and final day of Naional day celebrations.
In overseas markets, European stocks dropped after data showed that industrial output in Germany declined sharply in August.
FTSE is trading with a loss of 0.6% while German DAX has lost 0.4% and French CAC 40 0.7%
Sector and Stocks
BSE Metal is the top sectoral loser down over 1.7% on Chinese growth concerns along with Healthcare, Capital Goods and Consumer Durables indice among others.
Within the metal sector Hindalco is particularly weak with a loss of 3.5% The aluminium major, which has lost mining rights on all the coal blocks allocated to it and is witnessing uncertainty over several bauxite mines.
Among other metal shares, Sesa Sterlite, Tata Steel and Coal India are down 1-2.6% each.
Sun Pharma has shed nearly 3%. Earlier,reports about Sun Pharma plans to invest more than $280 million in the experimental psoriasis drug in-licensed last month from US-based Merck Sharp& Dohme (MSD) eroded the appeal of its stocks.
Cipla has also lost around 2.4%. On October 4, 2014 Company has announced signing of a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran.
L&T has lost around 2%. However, news about receiving an engineering, procurement and construction (EPC) order worth Rs.1,630 crore in Uttar Pradesh may revive the investors' interests in company's stocks.
News about aquisitions and new launches firmed up auto stocks with Tata Motors emerging as the biggest gainer
with a surge of aound 2.4%.Despite total sales (including exports) of Tata commercial and passenger vehicles declining 8% to 46,118units in September 2014 over September 2013, promising data related to the sales of new launches like the
entry-level sedan Zest which has received over 10,000 pre-book ordrers even before the formal launchattracted investors to the company's stocks.
Launch of much awaited Ciaz sedan billed as Maruti Suzuki most audacious attempt at gatecrashing the mid-sized sedan party boosted company's stocks. Maruti Suzuki has pared early gains and is trading flat with negative bias.
However, Mahindra and Mahindra has lost 2.6% on the news about proposed acquisition of Europe based Peugeot.
In an attempt to revive its ailing two-wheeler segement which lost Rs 459 Crores in the last financial year
Mahindra & Mahindra have acquired a 51% stake in PSA Peugeot Citroen's scooters business.
Private sector lender ICICI Bank is trading with 0.6% higher. The bank announced acquisition of 5.2% stake in Hindustan Motors as part of settlement with the cash strapped maker of the iconic Ambassador car.
IT sector is trading flat though it witnessed a lot of investor interest as IT majors are expected to poststrong growth in the July-September quarter (Q2 FY15). In line with several earlier quarters, the country's largest IT services player Tata Consultancy Services (TCS) is seen leading the pack in Q2FY15, closely followed by HCL Technologies. TCS and Infosys were trading flat while Wipro was up 0.6%.
Among other shares, Apollo Tyres has rallied nearly 7.6% to Rs 212 on NSE after the Reserve Bank of India (RBI) said foreign investors can now buy up to 45% stake in the tyre manufacturer.
Shares of Ashok Leyland were up over 3% at Rs 43.20 after the company reported robust sales growth in heavy and commerical vehicle sales during September 2014.
Just Dial has surged 5% to Rs 1,713 on National Stock Exchange (NSE) after the company said it will establish an IT/ITES - BPO and software development centre at Devanahalli Industrial Area in Bangalore.
GMR Infrastructure has surged 12% to Rs 19.90 on National Stock Exchange (NSE) after the company said the first unit of 1370 MW Chhattisgarh supercritical thermal power plant synchronized.
