Benchmark indices recouped some early losses, led by technology and pharma stocks.
The 30-share BSE Sensex was down 205.93 points or 0.65 percent at 31,325.40 and the 50-share NSE Nifty fell 71.20 points or 0.73 percent to 9,749.05.
Infosys gained further, up 0.6 percent while SBI rebounded from early losses, up 0.5 percent ahead of earnings due later today.
Healthcare stocks, the most beaten down in recent correction, saw some short covering as Dr Reddy’s Labs, Sun Pharma and Lupin gained nearly 1 percent.
Selling continued in HDFC Bank, Reliance Industries, Asian Paints, L&T, Maruti Suzuki, Adani Ports and ONGC fell up to 2 percent.