Equity benchmark Sensex dropped over 200 points in early trade on Monday tracking losses in index-heavyweights Reliance Industries, TCS and Infosys amid sustained foreign fund outflow.
Investors are also cautious ahead of the US presidential election this week, traders said.
The 30-share BSE index gyrated 473 points in the first 30 minutes of trade. It was trading 139.36 points or 0.35 per cent lower at 39,474.71 at 0940 hours.
Similarly, the broader NSE Nifty fell 41.85 points or 0.36 per cent to 11,600.55.
Reliance Industries was the top laggard, tanking over 4 per cent, followed by HCL Tech, TCS, Asian Paints, Bajaj Auto, Infosys and HUL.
On the other hand, ICICI Bank, IndusInd Bank, Bharti Airtel and SBI were among the gainers, rallying up to 5 per cent.
In the previous session, Sensex ended 135.78 points or 0.34 per cent lower at 39,614.07, while Nifty slipped 28.40 points or 0.24 per cent to 11,642.40.
Exchange data showed that foreign institutional investors sold equities worth Rs 870.88 crore on a net basis on Friday.