All the sectors were trading in red and heavy selling pressure was seen in banking, capital goods, IT and auto sectors.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,008.12 points, was trading at 26,948.88 points (at 09.19 a.m.) in the early session, down 141.54 points or 0.52 percent from the previous day's close at 27,090.42 points.
The Sensex touched a high of 27,010.22 points and a low of 26,918.93 points in the trade so far.
The S&P bankex slumped by 124.40 points, capital goods index dropped by 114 points, IT index dropped by 81.34 points and auto index fell by 67.15 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also dropped 42.35 points or 0.52 percent and was trading at 8,079.10 points.