The S&P BSE Sensex failed to maintain initial gains in the late morning trade due to fresh selling mainly in Banking, FMCG, Oil and gas and Consumer Durable stocks.
The BSE Sensex opened higher at 19,002.77 and moved up to 19,007.31 but declined to 18,658.13, showing a loss of 228.29 pts or 1.21 per cent from its last close.
The NSE Nifty also dropped by 80.50 points or 1.45 per cent to 5,470.25.
However, Bharat Heavy Electricals Ltd (BHEL) firmed up by 2.86 pct, Bharat Heavy Electricals Ltd (BHEL) (1.55 pct), Oil & Natural Gas Corpn (1.81 pct), Coal India (1.36 pct), Jindal Steel (1.32 pct) and Tata Steel (1.30 pct).
Meanwhile, the Indian rupee dropped to 66.90 per dollar in the late morning trade at the Interbank Foreign Exchange market, plunging by 90 paise against yesterday's close of 66.00. The rupee depreciation fuels inflation, increases import bill and current account deficit.
Asian stocks gained in their early trade on evidence of a pick-up in global manufacturing. Key benchmark indices in China, HongKong, South Korea, Japan, Indonesia, and Taiwan rose by 0.46 pct to 2.58 pct.