The BSE benchmark Sensex was down by 121 points in early trade on Wednesday on persistent selling pressure in banking, metal, realty, capital goods and refinery stocks amid weak Asian cues.
The 30-share Sensex resumed lower at 15,854.36 and hovered in a range between 15,887.80 and 15,738.27 before quoting at 15,753.17 at 1015 hours, a net loss of 120.78 points, or 0.76%, from its last close.
The NSE's 50-share Nifty index was also down by 37.55 points, or 0.79%, at 4,712.95 at 1015 hours.
Interest rate-sensitive banking stocks extended their losses on fears of an increase in bad loans in a slowing economy.
The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near-month December, 2011, series to the January, 2012, series. Near-month December, 2011, F&O contracts will expire on Thursday.
The major losers in early trade were Jindal Steel (2.87%), DLF (2.12%), ICICI Bank (2.12%), Larsen & Toubro (1.68%), Sterlite Industries (1.64%) and SBI (1.53%).
Meanwhile, Asian stocks fell in early trade amid concerns over economic growth in the region. The key benchmark indices in Hong Kong, Singapore, China, Japan, South Korea and Taiwan were down by between 0.01% and 0.94%.