The benchmark BSE Sensex fell over 61 points in early trade on Wednesday on selling by funds and retail investors ahead of monthly expiry in the derivatives segment amidst lower-than expected corporate earnings by some firms.
The 30-share barometer, which had lost 280.62 points in the previous two sessions, moved down by another 61.40 points, or 0.29%, to 25,929.83 with capital goods, realty, metal and healthcare stocks leading the fall.
Also, the National Stock Exchange index Nifty shed 18.60 points, or 0.24%, to 7,730.10.
Brokers said offloading of positions by foreign funds and retail investors in view of Thursday's monthly expiry in the derivatives segment influenced the trading sentiment.
They said lower-than-expected quarterly earnings by some companies including Larsen and Toubro also dampened the sentiment.
Stock of Larsen and Toubro plunged 7.98% to Rs. 1,513.45 after the company's quarterly earnings did not meet market expectations.
Among other Asian markets, Japan's Nikkei rose 0.27%, while Hong Kong's Hang Seng was trading 0.75% higher in early trade.
The US Dow Jones Industrial Average ended 0.42% down in Tuesday's trade.