Sensex and Nifty, the two key equity benchmarks, which opened in the green in early trade on Friday, erased all their gains and slipped into the negative territory despite strength in global markets.
AT 11.15 am, the BSE Sensex was down by 264 points to 62,306, while the broader NSE Nifty was trading at 18,542, down by 66 points.
On the 30-share Sensex platform, HCL Tech, Infosys, TechM, TCS, Wipro, Bajaj twins, Reliance, and others emerged main losers. On the flip side, IndusInd Bank was the top gainer in the Sensex pack, rising 1.10 per cent, followed by Sun Pharma, Nestle, ITC, HUL, L&T, HDFC Bank, and others.
The broader markets, meanwhile, outweighed the frontline indices. The BSE MidCap and SmallCap indices rose up to 0.5 per cent.
Within sectors, the Nifty PSB index built on yesterday's gain and rallied 1.5 per cent. Metal, FMCG, and Auto pockets were other top gainers, while the IT index slipped over 1 per cent.
In the previous session on Thursday, the 30-share BSE benchmark ended 160 points higher at 62,570. The broader NSE Nifty advanced 48 points to settle at 18,609.35.
In Asian markets, bourses in Tokyo, Shanghai, Seoul and Hong Kong were trading with gains in mid-session deals. Equities on Wall Street ended higher in the overnight session on Thursday.
Foreign Institutional Investors (FIIs) were net sellers in capital markets as they offloaded shares worth Rs 1,131.67 crore on Thursday, according to exchange data.
International oil benchmark Brent crude was trading 0.85 per cent higher at $76.80 per barrel.
Meanwhile, the rupee appreciated 19 paise to 82.19 against the US dollar in early trade on Friday.
Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.30 against the dollar, then gained further ground to touch 82.19, registering a rise of 19 paise over its previous close. On Thursday, the rupee settled 9 paise higher at 82.38 against the US dollar.