Markets fell further on selling pressure in financials and select index heavyweights tracking a sell-off in global markets while the proposed investigation of investment through P-Notes also weighed on sentiment.
At 14:55 pm, the S&P BSE Sensex dropped 471 points to 27,611 and the Nifty50 slumped 150 points to 8,559 levels.
The broader markets, S&P BSE Midcap and Smallcap lost over 1.5% each.
Markets extended losses in noon trades, amid weak global cues, with financials leading the decline while TCS eased ahead of its second quarter earnings later today.
At 12:40pm, the S&P BSE Sensex dropped 356 points at 27,725 level. Nifty50 dropped 111 points to 8,598.
(updated at 11:50am)
Benchmark indices continued to trade lower amid weak Asian cues with financials and auto shares leading the decline.
At 11:50 am, the S&P BSE Sensex dropped 278 points or 1%, trading at 27,804 level. Nifty50 too slipped 87 points or 1%, hovering around 8,622levels. The broader markets followed the trend as S&P BSE Midcap and Smallcap fell by 1% each.
Major gainers from Sensex were Infosys, ONGC and CIPLA, all gaining above 1%, while Adani Ports, Tata Motor and HDFC were down by 3% each.
Gruh Finance hit a record high of Rs 370, up 4% on the BSE in intra-day trade, after the housing finance company reported 20% year on year (YoY) rise in net profit at Rs 61.98 crore for the second quarter ended September 30, 2016 (Q2FY17).
Cipla was trading higher by 3% to Rs 596 on the BSE in early morning trade after the drug maker on Wednesday said that it has received Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for its Indore facility indicating formal closure of the US FDA inspection conducted in July/August, 2015.
Mortgage lender HDFC on Thursday said it will raise up to Rs 500 crore through rupee-denominated bonds from overseas investors.
Asian stocks stumbled to three-week lows and US stock futures and Treasury yields fell after China's September trade data showed a sharp decline in exports, raising fresh concerns about the health of the world's second-biggest economy.
Risky assets have had a torrid start to the final quarter of 2016 after recent outperformance as concerns around the outcome of US elections, the fallout from a "hard Brexit" and a struggling German banking sector spread turmoil in markets.