Markets managed to recover from the mid-morning decline and the indices inched back into the positive before noon. However, fresh selling in early afternoon has pushed the indices deep into the red.
The Sensex is trading lower by 139 points at 11900 at 01.10 PM.
The Nifty is trading lower by 43 points at 3530.
Satyam Computers continues to be the biggest loser among index stocks and is now trading more than 6.5 per cent lower. Wipro is the other major loser from the tech pack, having given up over 3 per cent.
TCS has given up more than 0.5 per cent while Infosys is trading with modest gains.
Metal stocks have declined further in the early afternoon selling pressure. Hindalco continues to trade with losses of over 4 per while Nalco is trading over 3.5 per cent lower.
Tata Steel is the big loser among steel stocks, having given up close to 4 per cent. SAIL is trading with losses of more than 3 per cent.
Reliance Industries has also lost further ground and the stock is trading more than 3 per cent lower.
Tata Chemicals, Dr. Reddy's and VSNL are among the other major losers.
Ranbaxy has gained further despite the weakness in the markets. The stock is trading more than 5 per cent higher.
Maruti has come down from its early highs and is trading with gains of over 2 per cent.
HLL is holding on to its gains of close to 2 per cent as the company is due to announce results shortly.
IPCL, HCL Technologies and HPCL are the other major gainers.
Mid-caps, which were holding firm till early afternoon, have also declined. The mid-cap index has given up all its gains and is trading more than 0.25 per cent higher. Market breadth is negative on the NSE.
Sadbhav Engineering, Panacea Biotech and Alps Industries are among the major gainers in mid-caps.
Ispat Industries, Tata Sponge and Igarashi Motors are among the mid-cap losers.