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At 9.50 am IST the Sensex was trading at 16058.41, down 269.84 or 1.65%. The Nifty too was trading lower at 4863.35, down 79.45 points.
Shares of Tata Motors were hammered down as the company reported flat global sales. The shares of Tata Motors was trading 6.73% lower at Rs 270 per share.
Among the other prominent losers were Maruti Suzuki, Jaiprakash Associates and HDFC.
Among the shares that gained were Cairn India, BPCL, Bank of Baroda and Wipro.
Indices are expected to continue to drift lower, as problems in Greece and the prospects of the country's exit from the eurozone mount.
Domestically too, things are not looking too encouraging with the fiscal deficit, current account deficit and inflation all a matter of serious concern.
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