The S&P BSE benchmark Sensex trimmed its initial losses, but was still quoted lower by 11 points to 18,708.30 in late morning trade on Friday on selling in select counters in view of persistent capital outflows amid weak global cues.
Shares of banking, consumer durable, healthcare, FMCG and metal sectors declined on sustained selling pressure.
The BSE-30 share index, Sensex, resumed lower at 18,695.80 points and dropped further to a low of 18,615.14 on profit- booking.
But, it recovered afterwards to 18,717.42 before quoting 18,708.30 points at 1025 hours.
It still showed a loss of 10.99 points, or 0.06 per cent, from its last close.
The NSE 50-share barometer Nifty also moved down by 5.90 points, or 0.10 per cent, quoting 5,650.00 at 1025 hours.
Major losers were Jindal Steel (3.44 pc), Sun Pharma (1.92 pc), Hindalco (1.74 pc), HDFC (1.34 pc) and ICICI Bank (1.23 pc).
Foreign institutional investors (FIIs) sold shares worth a net Rs. 2,094.06 crore yesterday, as per provisional data from the stock exchanges.
Asian stocks fell for the second day in a row after the U.S. Federal Reserve signalled it may soon downsize bond purchases under its quantitative-easing programme.
Key benchmark indices in China, Hong Kong, Japan, Singapore, Taiwan and South Korea fell by 0.65 to 3.12 per cent.