Benchmark indices were sharply lower for the second day in a row as Asian markets fell after grim date from China. The country's flash Caixin purchasing managers' index (PMI) dropped to a six and a half year low, confirming fears of a slowdown.
Most of the sectoral indices were trading lower with the metals index seeing the worst possible cuts. Vedanta, Hindalco and Tata Steel were among the early losers. The metal index was down almost 1.5 per cent in trade.
Shares in Motherson Sumi, which have plunged following the scandal at Volkswagon, continued to drop in trade despite the company clarifying that Volkswagon was not a major client.
IT stocks managed to remain resilient in a falling market with Infosys and MindTree among the gainers. Mid cap stocks also saw deep cuts with stocks like Bata, Voltas and Crompton among the losers.
Markets are expected to remain volatile ahead of the expiry for the Futures and Options later on Thursday.
Meanwhile, most of the Asian markets were trading sharply lower with the Hang Sang seeing a cut of almost 3 per cent in trade, while the Shanghai Composite was down 2 per cent.