The Sensex was last trading lower by 152 points, while the Nifty was down 48 points. Leading the pack of losers from the index stocks were Bharti Airtel, Hindalco, Reliance Infra and Hero Motor Corp.
Ranbaxy dropped almost 2 per cent on renewed worries over the company's quality standards. Heavyweights, HDFC, HDFC Bank and ITC also dragged the indices lower.
Banking stocks were also trading lower with most of the private sector and public sector banking units falling.
HDFC Bank, HDFC, Yes Bank and Indusidnd Bank were among the losers. Technology stocks also saw some selling pressure with Infosys and HCL both lower despite a falling rupee.
Real estate stocks also dropped on worries that the new Real Estate Regulatory Bill may dent margins. Among the prominent losers from the space were Unitech, DLF and Godrej Properties.
Nifty stocks that saw some buying interest were Cipla, Larsen and Toubro and Bank of Baroda.
Mid cap stocks also saw some losses with porminent losers from the space being Unitech, Tata Global and Reliance Power.
Meanwhile, markets in Asia were trading lower, following overnight losses in the US. The Hong Kong's Hang Sang and the Chinese Shanghai Composite were lower.