The benchmark BSE Sensex was trading lower by 77 points in early deals on sustained capital outflows by foreign funds and selling by retail investors.
The 30-share index declined by 77.38 points or 0.30 per cent to 25,502.96. The gauge had lost 580.56 points in the past two sessions on global sell-off amid renewed concerns over the health of Chinese economy.
In a similar fashion, the NSE Nifty was trading lower by 21.30 points or 0.27 per cent to 7,763.30.
Stocks of metal, banking, FMCG, infrastructure, realty and auto sectors were leading the fall.
Brokers said sentiment remained weak in the absence of any positive trigger amid sustained capital outflows by foreign funds.
Besides, extended losses at other Asian markets fanned by another round of weak Chinese economic indicators, sinking oil prices and rising tensions in the Middle East weighed on sentiments, they added.
In other Asian markets, Hong Kong’s Hang Seng index was down by 0.95 per cent, while Japan’s Nikkei shed 1.62 per cent in early trade today. Shanghai Composite Index, however, was up 0.62 per cent.
The US Dow Jones ended marginally up by 0.06 per cent in yesterday’s trade.