Stocks narrowed their early losses, but maintained the bearish momentum, with the benchmark BSE Sensex trading down by over 13 points and the broader Nifty below 7,800-level amid continued selling pressure.
The downbeat mood was triggered by fresh global slowdown concerns following dismal Chinese factory data.
Selling was also driven by heavy FII outflows and caution ahead of the derivatives expiry tomorrow.
Shares of metal, capital goods, auto, realty, banks, consumer durables, IT and technology faced selling.
The Sensex resumed at 25,526.53 and traded between 25,601 and 25,386.48, before quoting at 25,638.26 at 1142 hours, down 13.58 points, or 0.05 per cent.
The 50-share Nifty was also trading down by 21 points, or 0.27 per cent, at 7,791 at 1142 hours.
The big decliners are Tata Motors (1.9 per cent), Bajaj Auto, Wipro, Tata Steel and ONGC.
Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 1,052.24 crore yesterday, data from stock exchanges showed.
Asian markets were trading lower as overnight global sell-off was further compounded by the escalating Volkswagen emission scandal.
