TheBSE Sensex fell more than 1 percent on Wednesday as the expiry of September equity derivatives contract is seen weighing on shares at higher levels.
Selling was seen in Refinery, FMCG, Banking and IT sectors while Capital Goods, Auto and Healthcare sectors showed gains.
The BSE Sensex was down 240 points while the broader Nifty fell 76 points at 1142 hrs.
The NSE Nifty also eased by 6.60 points or 0.11 per cent to 5,885.85 at 1030hrs.
Meanwhile, foreign institutional investors sold net Rs 21.09 crore yesterday as per the provisional data from stock exchanges.
Asian stocks showed a mixed trend in their early trade as concerns of US lawmakers being able to arrange a budget deal preventing a government shutdown next week, weighed on the sentiment.
Key benchmark indices in Japan, Singapore, Taiwan and South Korea were off 0.08 pct to 0.73 pct while indices in China and Hong Kong rose 0.26 pct to 0.27 pct.