The S&P BSE Sensex and NSE Nifty 50 indexes erased intraday gain in afternoon trading dragged by losses in heavyweights like HDFC Bank, Reliance Industries, ITC, Bharti Airtel, Tata Consultancy Services and Sun Pharma. Weak European markets and US stock futures dampened mood on Dalal Street as traders booked profit in the last hour of trade, analysts said. Earlier in the day, benchmarks staged a gap up opening wherein the Sensex rose as much as 272 points from its previous day's close and Nifty 50 index touched an intraday high of 10,401.
As of 2:42 pm, the Sensex fell 102 points to 34,905 and Nifty 50 index was down 30 points at 10,282.
European markets were trading lower with France's CAC 40 index down 0.31 per cent, England's FTSE 100 declined 0.94 per cent and Germany's DAX fell 0.2 per cent.
Back home, twelve of 19 sector gauges compiled by the BSE were trading lower led by the S&P BSE Oil & Gas index's 1.45 per cent decline. Power, telecom, banking, realty, healthcare and energy shares were also witnessing selling pressure.
On the other hand, S&P BSE Auto index was top gainer, up 1 per cent.
Mid- and small-cap shares were also witnessing selling pressure as S&P BSE MidCap index fell 0.15 per cent and S&P BSE SmallCap index dropped 0.7 per cent.
Indian Oil was top Nifty loser, the stock declined 2.2 per cent to Rs 85.20. Sun Pharma, BPCL, ONGC, Tata Motors, Power Grid, GAIL India, UPL, Dr Reddy's Labs, JSW Steel and ITC were also among the losers.
On the flipsdie, Nestle India, Shree Cements, Maruti Suzuki, Britannia, Tata Steel and ICICI Bank were among the gainers.
The overall market breadth was negative as 1,473 were declining while 1,231 were advancing on the BSE.