Benchmark share indices continue to trade in negative terrain weighed by weakness in technology shares on the back of weak outlook from US-based Oracle.
The Sensex and Nifty are trading below 15,600 mark and 4,700 levels, respectively.
By 1120 hrs, the Sensex was down 123 points at 15,562 and the 50-share Nifty declined 32 points at 4,661.
Asian markets are trading moderately lower after investors raised doubts over money borrowed by banks from ECB in the 3-year long term refinancing operation (LTRO). Japan's benchmark Nikkei, Hong Kong's Hang Seng and China's Shanghai Composite are down 1% each.
Back home, after witnessing a strong pullback on shortcovering yesterday, markets have lost ground on profit booking at higher levels.
The BSE IT Index has underperformed other indices, tumbling down by over 2% on weak outlook from Oracle. Infosys is down 2.65% and Wipro has fallen 2.5%; TCS is down 1.4%.
In the metal space, Bhushan Steel, Coal India, Hindalco Inds, Jindal SAW, Jindal Steel, JSW Steel, NALCO, SAIL, Sesa Goa, Sterlite Inds and Tata Steel have melted between 1-3%.
Bank shares are also among the top losers. SBI and ICICI Bank have declined between 1-2%.
Among other index heavyweights, Reliance Industries, L&T and Bharti Airtel have lost between 1-2%.
However, buying support was seen in defensives wherein FMCG major HUL has outperformed other largecaps, rising 2% while ITC has gained by 0.5%.
In the broader market, the mid-cap and small-cap indices have also shed nearly 1% each.
Amongst other shares, Mahindra Holidays has surged by 2.2% at Rs 285 after it announced the launch of Club Mahindra Emerald Palms in Goa.
SKS Microfinance continues to be locked in 5% upper circuit ever since the market regulator SEBI approved increase of FII investment limit in the company to 74% from 24% earlier.
Sugar stocks like Bajaj Hindusthan is up by 2% and Balrampur Chini has gained 4% on reports that the Food Minister is in talks with Finance Ministry on partial decontrol of sugar.
The broader market breadth is also weak with 846 stocks advancing and 1240 shares declining.
