The Sensex was trading lower by 157 points, while the Nifty lost 57 points in early trade. Among the top losers from the Nifty was Axis Bank which shed almost 6 per cent in trade. Other prominent losers were Jaiprakash Associates, Bank of Baroda and Infosys.
Stocks that gained ground were Hero Motor Corp, ITC and Tata Motors. Bharti Airtel was also up after Singtel increased stake in the company.
Banking stocks which had shown some signs of recovery on Wednesday slumped in trade with ICICI Bank, HDFC and Yes Bank losing ground. PSU banking stocks were also not spared with prominent losers from the space being Union Bank, Syndicate Bank, State Bank and Bank of India.
Real estate stocks were also down in trade with notable losers from the space being Unitech, HDIL, DLF and Anant Raj.
Gitanjali Gems which was locked at the upper end of the circuit filter on Wednesday was trading higher by 4 per cent.
Natco Pharma was trading higher today after the drug firm reported 27.59 per cent rise in consolidated net profit.
Subex was locked at the upper end of the circuit filter, after the firm reported better then expected results.
Meanwhile, markets in Asia were trading subdued on worries that the US could taper off QE3 in September. The Seoul Composite, the Jakarta Composete and Singapore's Strait Times all lost ground trade today. The Shanghai Composite, however, bucked the trend and rose 3 per cent in trade.