The benchmark BSE Sensex pared its initial gains and slipped by 39.60 points in late morning trade on profit-booking in key stocks of energy, auto, oil and gas, technology and FMCG sectors.
Earlier, the market rallied 165 points on a firm trend in Asian equities following overnight rally in US bourses after the Federal Reserve announced the first interest rate hike in nearly a decade.
The index resumed higher at 25,596.63 and hovered between 25,659.32 and 25,452.88. It was trading at 25,454.77 at 1145 hours, showing a loss of 39.60 points, or 0.16 per cent, over its previous close.
The NSE Nifty was also trading lower by 8.65 points, or 0.11 per cent, at 7,742.25.
Major BSE losers were ONGC (2.49 per cent), M&M (1.46 per cent), Axis Bank (1.23 per cent), Tata Motors (0.96 per cent) and Maruti (0.95 per cent).
Meanwhile, foreign investors sold shares worth Rs 503.22 crore yesterday, as per provisional data.
Globally, Asian market were trading higher after the US Federal Reserve emphasised on a gradual path for future interest rate hikes.
