The markets continued to trade weak in late-morning trades with the BSE Sensex at 16,134, down 238 points and the Nifty at 4,836, down 70 points. Earlier in the day, the BSE benchmark index touched the day's high at 16,297 and the day's low at 16,177.
Among the sectoral indices, BSE Oil & Gas, Power, Auto and Bankex indices are leading the losses, down 1-2% each.
Reliance Industries, Petronet LNG, BPCL and Hindustan Petroleum Corporation, down 2-3% each, are the prominent losers from the Oil & Gas space.
Tata Motors, Bajaj Auto, Ashok Leyland and Bharat Forge, down 1-3% each, are the major gainers among the Auto stocks.
Bank of Baroda, Canara Bank, Kotak Mahindra Bank and Punjab National Bank, down 2% each, are the prominent losers from among the financials.
On the Sensex, BHEL, Tata Motors, Bajaj Auto, Reliance Industries and NTPC, down 3-4% each.
Maruti Suzuki, JP Associates and Cipla are the prominent gainers, having gained nearly 1% each. Coal India has gained marginally at Rs 300.
Among individual stocks, Phoenix Mills has gained nearly 2% at Rs 197.35 in morning trades after the Mumbai-based company announced its expansion plans across the country. The company plans on setting up shopping malls, 'Phoenix Market City', in major cities like Mumbai, Bangalore and Chennai by March 2012.
Bharti Airtel is trading lower by nearly 2% at Rs 391 on the Bombay Stock Exchange (BSE) after the Central Bureau of Investigation (CBI) conducted searches at company's office in Gurgaon.
Kingfisher Airlines has added 1% at Rs 24.35 in the morning deals over reports that the government has decided to ask the Life Insurance Corporation (LIC) to consider picking up 10% stake in the troubled Kingfisher Airlines.
Reliance Industries is trading lower by 2.9% at Rs 785 after the Oil Ministry sanctioned taking "scrupulous" action against Reliance Industries for natural gas output from its KG-D6 fields falling below the target.
The overall market breadth is negative as 1,388 stocks have declined against 861 advancing ones, on the BSE.