The BSE Sensex resumed lower at 20,839.45 and dropped further to 20,789.44 before quoting at 20,798.44 at 1030hrs, showing a loss of 56.48 points, or 0.27 per cent, from its last close.
The NSE Nifty also moved down by 10.50 points or 0.17 per cent to 6,191.35 at 1030hrs.
Asian stocks fell in their early trade with investors awaiting influential US job data later this week.
Key benchmark indices in Indonesia, Hong Kong, Japan, Singapore and South Korea were down 0.15 pct to 2.05 pct, while that of China and Taiwan rose 0.35 pct to 1.27 pct.
US stocks declined for a third day yesterday as investors assessed reports on car and retail sales before US jobs data later this week that may offer clues on when the Federal Reserve will reduce stimulus.