The Sensex was trading at 17,475 points, lower by 63 points. The Nifty was seen trading lower by 21 points at 5,305 points at 9.40 am IST.

The European Central Bank (ECB) cut its key benchmark rate by 25 basis points to a record low of 0.75%, whereas deposit rates were slashed to zero to stimulate bank lending to households and businesses.

Stocks reacted negatively after the ECB warned that the interest rate cuts may only have a limited impact on the euro zone economy, which is moving towards recession.

The Bank of England increased its target for asset purchases by 50 billion pounds to 375 billion pounds while China cut interest rates for the second straight month, indicating faltering growth.

Among the shares that gained ground in morning trade were BPCL, Coal India, ACC, and Mahindra and Mahindra.

Stocks that failed to lure investors in early trade were Jindal Steel, Tata Power, Hindalco and DLF.

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