Equity benchmark Sensex declined over 250 points in early trade to slip below the 61,000 mark on Thursday, tracking heavy losses in auto, IT and banking stocks amid a negative trend in global markets.
Besides, a weak rupee against the dollar also impacted domestic equities, traders said.
The 30-share BSE index was trading 280.36 points or 0.46% lower at 60,753.19 in initial deals. Similarly, the broader NSE Nifty fell 87.35 points or 0.48% to 18,069.65.
Axis Bank was the top loser in the Sensex pack, shedding 2.21%, followed by Tech Mahindra, M&M, Tata Steel, RIL, HDFC, Maruti and Infosys.
On the other hand, Dr Reddy's, HUL, Bharti Airtel, PowerGrid and Sun Pharma were among the gainers.
In the previous session on Wednesday, Sensex ended 151.60 points or 0.25% lower at 61,033.55. The NSE Nifty fell 45.80 points or 0.25% to end at 18,157.
The rupee fell 17 paise to 81.64 against the U.S. dollar in early trade on Thursday.
Foreign institutional investors (FIIs) remained net buyers in the Indian capital market on Wednesday, as they bought shares worth Rs 386.83 crore, as per exchange data.
International oil benchmark Brent crude was trading 0.06 per cent lower at $92.71 per barrel.
In Asian markets, bourses in Tokyo, Shanghai, Seoul and Hong Kong were trading with significant losses.
Equities on Wall Street ended lower in the overnight session on Wednesday.
