The key benchmark index was trading lower on the back of losses in world markets. The Sensex was down 62 points at 17,165 levels and the Nifty fell 0.4 per cent to 5,127.
Metals and realty counters were under some selling pressure.
Among the Sensex stocks, Sterlite Ind was the biggest loser. The stock fell 1.8 per cent. Tata Steel, ICICI Bank and RIL were the other major losers, down over 0.8 per cent each.
Bharti Airtel, however, was the biggest gainer in the pack.
In US, traders turned away from stocks and put money into safe-haven assets like the dollar and Treasurys. An earnings forecast from 3M Co. and a sales report from McDonald's Corp. disappointed investors. The reports weighed on the Dow and overshadowed an increased profit forecast from FedEx Corp., whose results are seen as a gauge for the health of the economy.
The Dow ended down 104.14, or 1 percent, at 10,285.97 after being down as much as 140 points. The broader S&P 500 index fell 11.31, or 1 percent, to 1,091.94, while the Nasdaq composite index fell 16.62, or 0.8 percent, to 2,172.99.
Taking cues from Wall Street, Asian markets also slipped today. Japans Nikkei fell 1.4 per cent and Hong Kongs Hang Seng shed 1 per cent. Chinas Shanghai Composite also slid 1.6 per cent.