BSE benchmark Sensex washed out initial gains to quote over 117 points lower at 26,608.52 after participants locked in gains at prevailing levels amid fresh foreign capital outflows.
Besides, a cautious stance adopted by investors ahead of GDP numbers also weighed on the sentiments.
The Sensex, after gaining about 112 points in early trade on widespread gains on sustained buying, succumbed to profit-booking by participants and was trading 117.08 points, or 0.43 per cent, to 26,608.52 in late morning trade.
The NSE 50-share Nifty also dropped by 33.60 points or 0.41 per cent to 8,144.90 after recapturing the 8,200-mark to touch a high of 8,213.60.
Shares of country's largest drug maker Sun Pharma plunged 5.88 per cent to Rs 764.75 after the company yesterday posted lower-than-expected fourth quarter earnings.
Other losers that dragged down the key indices were GAIL, Infosys, TCS, Bharti Airtel, ONGC, L&T, Adani Ports, Hindustan Unilever and RIL, falling by up to 2.52 per cent.
In rest of Asia, Hong Kong's Hang Seng was up 1.32 per cent while Japan's Nikkei was quoting 0.97 per cent higher. Shanghai Composite gained 2.92 per cent.
