The BSE benchmark Sensex declined further by 120 points in the early trade due to persistent selling pressure mainly in the banking counter on the back of weak Asian cues.
Banking stocks declined for the second straight day on worries that the central bank RBI may hike interest rates to tame inflation.
However, index heavyweights Reliance Industries (RIL) and Larsen & Toubro bucked the weak trend.
The BSE benchmark Sensex resumed higher at 20,509.95 but declined immediately to 20,374.95, before quoting at 20,378.31 at 1015 hrs, showing a net loss of 120.41 points or 0.59 per cent.
The NSE 50-share Nifty also moved down by 36 points or 0.59 per cent to 6,110.35 at 1015 hrs from its last close.
Asian stocks edged lower in the early trade as stronger dollar drove commodity prices lower.
The key benchmark indices in China, Japan, South Korea, Hong Kong and Taiwan fell by between 0.09 per cent and 1.42 per cent while Singapore’s Straits Times rose by 0.14 per cent.
