BSE Sensex was down 236 points to 27,348 while Nifty fell nearly 50 points to 8,273.
Sushil Choksey, director of Rosy Blue Securities, said Indian markets are likely to be volatile during earnings season. Index heavyweights such as Axis Bank, Reliance Industries, TCS and Wipro will report results for the quarter ending December 31, 2014 later this week.
Select bluechips like ICICI Bank and HUL also fell over 1.5 per cent. HUL had gained in the previous six sessions amid speculation about an open offer from its parent Unilever.