Indian equity benchmarks extended their losses from the previous session and tanked sharply due to weak global cues amidst high volatility.
Asian stocks fell as the US inflation for April stood persistently high, which dented investors' confidence.
The US April inflation print came at 8.3 per cent from a year ago, slower than March's peak of 8.5 per cent. But it is the highest in over 40 years.
At 11.03 a.m., Sensex was down 975 points or 1.8 per cent at 53,114, whereas Nifty was down 302 points or 1.9 per cent at 15,865. By 11:45 a.m., Sensex was hovering around 53,163.27 or 925.12 (1.71%) down while Nifty was 15,878.15 or 288.95 (1.79%) points down.
"Even though DII buying is more than FII selling now, that is not enough to lift sentiments in the market since the macro headwinds are strong," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Market's preference for value over growth is reflected in the strength of high quality banking stocks which are even now at buyable valuations."
Nifty continues to look weak and some more downside is expected before stability and a short term reversal, said Deepak Jasani, Head of Retail Research, HDFC Securities.
"16,000-16,197 could be the band for the Nifty in the near term," said Dasani.
(With inputs from IANS)