The benchmark BSE Sensex dropped 98 points in the late morning trade due to fresh selling, mainly at metal, power, refinery, banking, healthcare and FMCG counters following overnight losses in the US market.
The Sensex resumed higher at 27,885.36 and firmed up further to 27,911.44 on initial buying on the back of good foreign capital inflows.
However, it declined immediately to 27,721.11 before quoting at 27,739.66 at 1045 hours, a loss of 97.55 points, or 0.35 per cent, from its last close.
The CNX 50-share Nifty also fell 27.75 points, or 0.33 per cent, to 8,395.50 at 1045 hours.
Major losers were Tata Steel (5.33 per cent), Vedanta (3 per cent), Cipla (1.59 per cent), Hindalco (1.26 per cent), Tata Power (1.23 per cent), ITC (1.13 per cent), BHEL (1.04 per cent) and NTPC (1.03 per cent).
However, Coal India rose 3.10 per cent followed by Tata Motors 0.93 per cent, Axis Bank 0.82 per cent and L&T 0.56 per cent.
Foreign portfolio investors bought shares worth a net Rs 123.49 crore yesterday and domestic institutional investors (DIIs) purchased shares worth a net Rs 103.58 crore.
In the overseas market, Asian stocks were trading mixed.
US stocks ended slightly lower yesterday after the minutes from last month’s Federal Reserve meeting showed officials were unlikely to raise interest rates in June amid a slowdown in economic growth.
Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan were down 0.04 per cent to 1.08 per cent while China and Japan were up by 0.02 per cent to 1.12 per cent.