The BSE benchmark Sensex tumbled 184 points in late morning trade due to selling pressure on power, banking, realty, refinery and capital goods stocks amid weak Asian markets.
Sensex resumed higher at 17,377.59 but soon declined to 17,128.11 before quoting at 17,177.60 at 1015hrs, down 184.14 points or 1.06% from its last weekend's level.
The NSE 50-share Nifty also declined by 58.45 points or 1.11% to 5,219.75 at 1015hrs.
Major losers were ICICI Bank (2.58 pc), NTPC (2.07 pc), Tata Power (1.76 pc), TCS (1.75 pc), BHEL (1.71 pc), Gail India (1.58 pc), ONGC (1.44 pc), M&M (1.40 pc), Cipla (1.33 pc), Larsen (1.26 pc), Tata Motors (1.26 pc), Serlite (1.24 pc), Bharti (1.21 pc), and Reliance Industries (1.14 pc).
Marketmen said equities may remain volatile this week as traders roll over positions from March derivatives series to April series. The March derivatives contracts will expire on Thursday.
Most Asian shares edged lower in the early trade on fears of the impact of an economic slowdown in China.
Key indices in Indonesia, Hong Kong, Taiwan, Singapore and South Korea were down by up to 1.29%. Markets in Japan and China rose 0.2% and 0.1% respectively.