At 2:35PM, the 30-share Sensex was down 174 points at 27,928 and the 50-share Nifty was down 54 points at 8,472.
In the broader market, the BSE Mid-cap index was down 1% and the Small-cap index was down 1.2%. Market breadth continued to remain weak with 1,887 losers and 865 gainers on the BSE.
Meanwhile, the continued protests by the Congress over the GST Bill after it was tables by the government in the Rajya Sabha also weighed on sentiment. The Rajya Sabha was adjourned for the day.
The rupee continued to trade weak down 37 paise at 64.24 as the US dollar strengthened
after China surprisingly devalued the yuan by nearly 2%.
SECTORS & STOCKS
Except for IT all other sectoral indices were in the red with Metal down nearly 3% folllowed by Auto, Bankex and Realty sectors among others.
State Bank of India was down nearly 4% at Rs 277 after the state-owned banking major reported lower-than-expected net interest income while rising non-performing assets also weighed on sentiment. The bank reported a net interest income of Rs 13,732 crore in the quarter ended June 30, 2015 compared to analysts estimate of Rs 15,344 crore.
Further, gross non-performing assets were higher at 4.29% in the qurter compared with 4.25% in the previous quarter.
Among other financials, HDFC, ICICI Bank, HDFC Bank and Axis Bank were down 0.2-1.8% each.
Tata Motors continued to witness profit taking and was down nearly 3% after the company last week said its net profit for the April-June period dropped 49% to Rs 2,769 crore, as its retail sales for the most valuable products, Jaguar and Land Rover, plunged 33 per cent in China.
M&M was down 1.2% after the company reported marginal decline in net profit for April-June 2015 quarter Weighed down by lack of new products in the passenger vehicle space and drastic fall in demand for tractors.
Capital goods shares eased ahead of June IIP data scheduled for release on Tuesday. BHEL and L&T were down 0.5-1.1% each.
However, IT majors Infosys and TCS were up 1-2% each on reports that both the companies are in the race for GST Bill IT contract.
Among other shares, Shares of Chennai Petroleum Corporation rallied 16% to Rs 237, extending its previous day’s 15% surge on the BSE, after reporting a strong set numbers for the first quarter ended June 30, 2015 (Q1). The stock is currently trading at its fresh 52-week high on the bourses.
Tyre makers such as JK Tyre & Industries, MRF, Ceat, Goodyear India and Apollo Tyres have fallen by up to 11% after after China's central bank moved to devalue its tightly controlled currency, stoking fears of Chinese exports becoming cheaper.