The Bombay Stock Exchange benchmark Sensex lost 117 points in early trade on Thursday on heavy selling by funds, tracking weak global trend.
The 30-share index, which had gained 134.50 points in previous day's trading, fell by 116.67 points to 14,561.56.
Similarly, the National Stock Exchange benchmark Nifty dropped by 38.30 points at 4,377.45 points as heavy-weight stocks like Reliance Industries, Infosys Technology and SAIL declined on fresh selling.
Marketmen said trading sentiment turned bearish following a weak trend in overseas markets. Hong Kong share prices opened 1.6 per cent down on profit-taking.
Market participants were also cautious ahead of the release of inflation data this evening, they said.