The Sensex ended 29 points lower at 28,429 and Nifty fell 12 points to settle at 8,775.
Sentiment was subdued after data released late on Wednesday showed India's economy grew at a much lower-than-expected 7.1 per cent in the April-June quarter, its slowest pace in 15 months.
Meanwhile, wireless services providers slumped after Reliance Industries Chairman Mukesh Ambani said the company would make all domestic voice calls and roaming free and that data would be priced well below its competitors.
Following Mukesh Amabni's comments at its 42nd Annual General Meeting shares of Bharti Airtel ended 6.3 per cent lower and Idea Cellular slumped 10.5 per cent. While, Reliance Industries declined 3 per cent.
Cement stocks declined after the Competition Commission of India imposed a fine of Rs 6,320 crore on 11 cement companies for price fixing.
ACC and Grasim Industries fell over 1 per cent each.
GAIL India, HDFC, Coal India, Lupin, Tata Steel, Mahindra & Mahindra and ICICI Bank were among gainers from the Nifty basket of shares.
3.25 p.m.: Tata Motors was up 1.35 per cent at Rs 544.95, the stock has gained over 10 per cent in last one week. Ruchit Jain of Angel Broking says traders can book profit in Tata Motors around Rs 562, where the stock is expected to face resistance.
3.15 p.m.: Broader markets extended losses, the Sensex was down 52 points at 28,399.71 and the Nifty traded 20 points lower at 8,766.
3.10 p.m.: Reliance Industries shares were down 2.85 per cent at Rs 1,029.75. Romal Shetty, partner and head of telecom at KPMG, says Reliance Jio won't be able to offer free voice calls to its subscribers for long as interconnect charges will be huge and Reliance will have to take it on its balance sheet. (Watch)
3:02 p.m.: Idea Cellular, Bharti Airtel, Reliance Industries, BPCL, Aurobindo Pharma, BHEL, Adani Ports, ACC, Grasim Industries and Wipro were among the top Nifty losers.
2:57 p.m.: Stock markets edged lower in afternoon deals on the back of weakness in telecom, capital goods, realty and oil & gas stocks. Sensex slips 37 points to 28,415 and Nifty declines 18 points to 8,768.
2:41 p.m.: Real estate stocks witness selling pressure. The BSE Realty index was down 1.89 per cent; DLF was the top loser from this space, down 4.4 per cent to Rs 148. Indiabulls eal Estate, HDIL, Godrej Properties, Oberoi Realty and Unitech were also among the laggards.
2:17 p.m.: Banking stocks extend gains. Bank Nifty advances 0.65 per cent or 128 points to 19,915.
2:09 p.m.: Oil & gas stocks were witnessing selling pressure. The BSE Oil & Gas index was down 0.45 per cent; Bharat Petroleum, Reliance Industries, IGL, Pwetronet LNG and HPCL were among the losers.
1:42 p.m.: Indian shares were flat on Thursday as auto makers extended recent gains on expectations of rising sales, while telecom firms such as Bharti Airtel Ltd slumped after Reliance Industries Ltd unveiled plans to offer free local voice calls on its new mobile network.
Sentiment was also somewhat subdued after data released late on Wednesday showed India's economy grew at a much lower-than-expected 7.1 percent in the April-June quarter, its slowest pace in 15 months.(Read)
1:13 p.m.: Banking stocks witness buying interest. The Nifty Bank index was up 0.4 per cent; ICICI Bank, Federal Bank, Axis Bank, Canara Bank, State Bank of India and Yes Bank were among the gainers.
1:06 p.m.: The overall market breadth was marginally negative as 1,311 stocks were declining while 1,159 were advancing.
12:45 p.m.: Real estate stocks were witnessing selling pressure. The BSE Realty index slipped nearly 1 per cent; DLF, Indiabuls Real Estate, HDIL, Oberoi Realty, Godrej Properties, Unitech and Omaxe Were among losers.
12:40 p.m.: GAIL India, ICICI Bank, Tata Motors, Mahindra & Mahindra, Coal India, Bosch Ltd, Bajaj Auto, HDFC, Hero Motocorp and Tata Steel were among the top Nifty gainers.
12:27 p.m.: Bharti Airtel and Idea Cellular were among the top Nifty losers. Idea Cellular slumped as much as 9 per cent to hit 52-week low of Rs 85 and Bharti Airtel fell 9 per cent to Rs 301.50 after Reliance Industries' chairman Mukesh Ambani outlined disruptive services in telecom industry which will be launched by Reliance Jio from September 5.
12:23 p.m.: Selling pressure seen in capital goods, pharma, oil & gas and IT stocks.
11.55 a.m.: Sensex down 20 points at 28,432, Nifty traded 10.3 points lower at 8,775.9 as telecom stocks extended losses. Both Bharti Airtel and Idea Cellular shares were down over 8 per cent each.
11.50 a.m.: Telecom Stocks extended losses; Bharti Airtel down 5.64 per cent, Idea Cellular slumped 5.83 per cent while Reliance Communications shares traded 2.13 per cent lower.
11.40 a.m.: Bharti Airtel, Idea Cellular, Reliance Communications shares came under selling pressure, down between 2-4 per cent after Mukesh Ambani announced Jio data rates.
11.20 a.m.: Pharma stocks came under selling pressure, the Nifty Pharma, NSE's sub-index for pharma shares, was down 0.44 per cent. Auro Pharma, Sun Pharma were the prominent losers in the index, down between 0.5-1.5 per cent.
11.10. a.m.: Reliance Industries shares were up 1.2 per cent as chairman Mukesh Ambani starts speaking at the 42nd AGM of the company.
11.05 a.m.: Sushil Choksey, director at Indus Equity Advisors, says Reliance's AGM is important for shareholders in terms of Jio's launch. Investors could get disappointed if Reliance Jio launch is delayed beyond December 28, he said.
10.50 a.m.: Auto stocks extended gains, Nifty Auto sub-index of NSE was up 0.85 per cent led by gains in Mahindra & Mahindra and Tata Motors, which were up over 1 per cent each. Meanwhile, the Sensex was up 51 points and the Nifty traded at 8,803, up 17 points.
10.45 a.m.: Maruti Suzuki India August sales up 12.2 per cent at 1,32,211 units against 1,17,864 units last year. Global brokerage Nomura had estimated Maruti's August sales at 1.36 lakh units. Maruti shares were up 0.25 per cent at Rs 5,069.20.
10.35 a.m.: Reliance Industries Shares were flat at Rs 1,059 ahead of its 42nd AGM.
10.10 a.m.: Sensex turned choppy amid range bound trade. It was up 1 point at 28,453 and the Nifty traded 2.8 points higher at 8,789. However, buying was visible in auto stocks. Nifty Auto, NSE's sub-index for auto companies was up 0.68 per cent. Tata Motors, Bajaj Auto, Hero MotoCorp, Eicher Motors and Maruti Suzuki were among the gainers, up between 0.2-0.9 per cent.
10.00 a.m.: Hindustan Construction Company shares jumped as much as 19 per cent, extending yesterday's 20 per cent gains. In last two trading sessions the stock has rallied over 42 per cent compared to nearly 1 per cent gain in the broader Nifty. The rally in the shares of HCC follow a Cabinet's decision which requires government agencies to pay 75 per cent of arbitral awards to infrastructure companies immediately.
9.50 a.m.: Selling in energy and pharma stocks draged front line indices lower, Sensex was down 16 points at 28,436 while the Nifty50 index fell 3 points to trade at 8,783.
09.20 a.m. The BSE Sensex jumped around 70 points after a flat start, while the broader Nifty index edged past the key 8,800 levels amid continued bullish sentiments on the Street.
Investors seem to have shrugged off weak Q1 GDP data for now, traders said.
Buying was seen in auto and FMCG stocks and both the sub-index outperformed in early trade. Tata Motors, M&M, Hero MotoCorp and Bajaj Auto were among the top Nifty gainers, rising around 1 per cent.
However, cement stocks came under selling pressure, following the hefty penalty by the competition regulator. ACC, UltraTech Cement and Ambuja Cement traded 1-2 per cent lower today.
09:00 a.m.: Rupee opens lower at 67.04 per dollar against Wednesday's close of 66.96.
08:35 a.m.:The BSE Sensex and the broader Nifty are likely to open flat on Thursday, tracking weak trading across Asian markets. The Nifty futures trading on Singapore Exchange were nearly unchanged at 8,842 as of 08.20 a.m., indicating a lacklustre start for local equity markets.
The mood on the Dalal Street however continues to be bullish as the Sensex and Nifty broke out of a narrow range after weeks of consolidation.
"We reiterate our 8850 target in Nifty and suggest keeping stock specific trading approach now. Barring IT and realty pack, traders should focus on the remaining ones for fresh long trades. In short, stay with prevailing trend, which is clearly up and use any dips or pause to add quality stocks," said Jayant Manglik of Religare Securities.
Foreign investors bought cash shares worth Rs 854 crore on Wednesday, while domestic investors were net buyers to the tune of Rs 848 crore.
Sentiments are likely to be weighed down today by weak Q1 GDP data that was announced after-market hours yesterday. India's economic growth hit a 15-month low of 7.1 per cent in the June quarter. Annual growth in private spending slowed to 6.7 per cent in the latest quarter from a 7 per cent increase in the same period last year. The slowdown more than offset a 19 per cent annual surge in public spending.
"Growth continues to be driven by government spending..., which is a worry," said Abhishek Upadhyay, an economist at ICICI Securities Primary Dealership.
A number of stocks will be in focus today:
1) Reliance Industries' billionaire Chairman Mukesh Ambani is likely to announce a time line for the commercial launch of Jio 4G services at the company's annual general meeting today.
2) Cement stocks will be in focus, following the Competition Commission of India's decision to impose a Rs 6,320 crore fine on 10 cement companies. Ambuja Cements was fined Rs 1,160 crore, ACC was fined Rs 1,150 crore, Ultratech Cement Rs 1,180 crore and Jaiprakash Associates Rs 1,320 crore.
3) Oil marketing companies will be in focus after petrol and diesel prices were hiked overnight.
4) Auto companies will be in focus as month sales numbers would be announced today.
5) MCX shares will react to quarterly earnings, while Apollo Hospitals and newly-listed Mahanagar Gas will report its June quarter numbers today.
Asian shares dipped on Thursday after lower crude oil prices dented Wall Street and a pair of Chinese manufacturing surveys did little to inspire investors as markets waited to see if US employment data could put the Federal Reserve on track to hike interest rates.
(With inputs from agencies)