The Sensex and the Nifty opened the day higher led by gains in banking stocks a day after the Reserve Bank of India (RBI) cut interest rates, but, could not hold gains and dropped lower.
The Sensex was trading with losses of 12 points, while the Nifty lost 6 points in trade. Leading the set of gainers from the Nifty were stocks like Cipla and Sun Pharma.
Metal stocks continued to be the clear losers in trade with NMDC, Sesa Sterlite and Tata Steel among those that continued to lose ground.
Stocks that gained ground in trade apart from the pharma stocks was ITC and FMCG major, Hindustan Unilever.
Midcap stocks also saw some buying interest with Jubilant Foodworks and Bharat Forge among the gainers.
Shares in Pipavav Defense fell sharply after reliance Infrastructure announced a stake buy in the company. The stock was down 10% in trade.
Meanwhile, markets across Asia were subdued after weak closings in the US market. The Japanese Nikkei and the Shanghai Composite were trading with marginal losses.