The Sensex was trading lower by 20 points, while the Nifty lost 8 points in trade. Among the top Sensex gainers were DLF, ONGC, Kotak Mahindra and Reliance Infra.
Among the top losers in trade were Cairn India, ICICI Bank, HCL Tech and Tata Power. Ranbaxy Labs continued to trade lower after the pharma major's shares hit a 52-week low on ongoing worries over FDA compliance at its Mohali plant.
Cairn India fell despite the company saying it has plans to invest $3 billion over the next three years in finding more oil and raising output from its Rajasthan oilfields.
Parsvnath Developers was trading lower after it surrendered one of its SEZ licences. PSU banking stocks were trading mixed in trade with Indian Overseas Bank, IDBI Bank and Canara Bank recovering, while Andhra Bank and Syndicate Bank continued to grind lower.
Mid cap stocks were trading sharply lower with notable losers from the space being Aditya Birla Nouvo, India Cements, Opto Circuits and Sail.
Meanwhile, markets in Asia were trading sharply lower with the Shanghai Composite falling 3 per cent, after the 5 per cent fall on Monday.