The BSE Sensex is down 0.4 per cent, while the NSE Nifty falls 0.42 per cent, heading for a third consecutive declining session. Losses tracking lower Asian shares after a sudden reversal in some very popular, and thus crowded, trades sparked a bout of global risk aversion.
Among shares of blue chips, Tata Motors falls 2.4 per cent, while
Larsen & Toubro is down 1.8 per cent.
Also, traders point out anxiety ahead of Infosys' quarterly earnings on January 10 and inflation data mid-month.
However, overseas investors are buyers for a second consecutive day. They bought a net 6.74 billion rupees in stocks on Thursday, provisional exchange data shows, though Indian shares fell the most in nearly 1-1/2 months.
BSE Sensex extends losses, down 109 pts in early trade
(PTI) The benchmark BSE Sensex today declined over 109 points in early trade, extending losses for the third straight session, as funds and retail investors engaged in selling activity amid a weak trend in global markets.
The 30-share barometer fell 109.65 points, or 0.52 per cent, to 20,778.68. The index had lost nearly 283 points in the past two sessions.
Stocks of metal, auto, realty, capital goods and banking sectors led the fall.
Similarly, the wide-based National Stock Exchange index Nifty fell by 21.40 points, or 0.34 per cent, to 6,199.75.
Brokers said sustained selling by funds and retail investors amid a weak trend in the Asian trade, following overnight losses on the US market as investors book profits following solid gains in 2013, dampened the trading sentiment here.
In the Asian region, Hong Kong's Hang Seng index shed 1.04 per cent in early trade, while Japan's Tokyo Stock Exchange is closed for a public holiday.
The US Dow Jones Industrial Average ended 0.82 per cent down in yesterday's trade.