Equity benchmark Sensex fell over 175 points in early trade on Thursday, tracking weakness in IT, banking and financial stocks amid weak macroeconomic cues.
Besides, sustained foreign capital outflows and a sell-off in global equities also weighed on investor sentiments, traders said.
The 30-share BSE index was trading 179.48 points or 0.31 per cent lower at 57,446.43 in initial deals. Similarly, the broader NSE Nifty slipped 35.65 points or 0.21 per cent to 17,087.95.
Wipro was the top loser in the Sensex pack, slipping 5.20 per cent, followed by HDFC twins, TCS, Bajaj Finserv, UltraTech Cement and Kotak Bank.
Wipro Ltd has reported a 9.3 per cent drop in its September quarter net profit, weighed down by rising staff expenses and lower non-US earnings.
On the other hand, HCL Tech gained 3.50 per cent after it reported a 7 per cent year-on-year rise in consolidated net profit to Rs 3,489 crore for the September quarter.
M&M, Tata Steel, Dr Reddy's, IndusInd Bank and NTPC were also among the gainers.
In twin blows to Indian economic revival, higher food prices drove retail inflation to a five-month high of 7.4 per cent, while factory output fell for the first time in 18 months.
The second consecutive month of rise in consumer price index (CPI)-based inflation will add to the pressure on the Reserve Bank of India (RBI) to again raise interest rates to tame high prices.
In the previous session, the BSE Sensex climbed 478.59 points or 0.84 per cent to settle at 57,625.91. Likewise, the broader NSE Nifty reclaimed the 17,100 level by jumping 140.05 points or 0.82 per cent to close at 17,123.60.
Foreign institutional investors (FIIs) remained net sellers in the Indian capital market on Wednesday as they sold shares worth Rs 542.36 crore, as per exchange data.
International oil benchmark Brent crude was trading 0.04 per cent lower at USD 92.41 per barrel.
In Asian markets, bourses in Tokyo, Shanghai, Hong Kong and Seoul were trading with losses in mid-session deals.
Equities on Wall Street ended significantly lower in the overnight session.
On the domestic macroeconomic front, headline CPI inflation surged to 7.4 per cent in September from 7 per cent in the previous month, official data released on Wednesday showed.
The Index of Industrial Production (IIP) declined 0.8 per cent in August with heavy rains dampening construction activity and electricity demand, and the bleak manufacturing output belying the hope generated by the robust GST e-way bill data.
