The Sensex and the Nifty fall around 1 per cent.
Shares in Housing Development Finance Corp are off lows, up 0.65 per cent after falling as much as 2.3 per cent as FTSE increased its "investability weight" to 100 percent from 74 percent in its global equity index series, as per its website.
However, shares in IDFC Ltd gain 5 per cent after the Reserve Bank of India on Wednesday lifted restrictions placed on foreign investors purchasing shares of the company as their shareholding in IDFC fell below the prescribed limit.
Earlier, the BSE Sensex gained over 54 points to trade above 20,000 level in early trade on buying by funds and retailers ahead of industrial output data amid further strength in the Indian rupee.
The 30-share index rose by 54.60 points, or 0.27 per cent, to 20,052,05 points in early trade.
Realty, capital goods, power, healthcare, consumer durables and oil and gas sector stocks were major gainers. The index had gained almost 1,758 points in the previous five straight sessions.
The wide-based NSE Nifty moved up by 18.85 points, or 0.31 per cent, to 5,932.00.
Brokers said sustained buying by funds as well as retail investors ahead of industrial production (IIP) data for July month, to be released later in the day, mainly influenced the trading sentiments.
Besides, continued rise in the rupee's value against the dollar on increased capital inflows following recent steps announced by the RBI also supported the uptrend.
In the Asian region, Hong Kong's Hang Seng rose by 0.35 per cent, while Japan's Nikkei was down by 0.29 per cent in early trade.
The US Dow Jones Industrial Average ended 0.89 per cent higher in yesterday's trade.