The benchmark BSE Sensex dropped 187.27 points in late morning trade, while broader NSE Nifty held below the crucial 8,250 level on heavy profit-booking in FMCG, IT, auto, oil&gas and metal sectors.
The market witnessed volatility ahead of monthly derivative expiry for April series tomorrow amid anticipation over ongoing US Federal Open Market Committee meet reports.
However, realty, bank, healthcare and consumer durables witnessed buying interest and shares of smallcap companies gained, while midcap declined.
The 30-share BSE index resumed flat at 27,395.71 and hovered between 27,420.99 and 27,176.54 before quoting at 27,209.11 at 1045hrs, showing a loss of 187.27 points or 0.68 per cent from its last close.
The 50-share Nifty was also quoted lower by 59.70 points or 0.72 per cent to quote at 8,229.90 at 1045hrs.
Major losers were SSLT (3.64 per cent), HDFC (2.83 per cent), Tata Motors (2.23 per cent), ITC (2.15 per cent), TCS (1.57 per cent), Hindalco (1.45 per cent), BHEL (1.16 per cent), Dr Reddy's (1.10 per cent) and L&T (1.04 per cent).
Meanwhile, foreign portfolio investors sold shares worth Rs 1,532.84 crore yesterday, as per provisional data.
Asian stocks were trading lower as investors digested the raft of earnings due in the region and awaited the Federal Reserve statement.
Key indices in China, Hong Kong, Singapore, South Korea, Taiwan and Indonesia were down 0.33 to 2.08 per cent. Japanese stock market was shut today.
