Reuters Market Eye - The BSE Sensex is down as much as 1.03 percent, while the Nifty falls 1 percent, with both indexes falling to their lowest since October 9 and below their respective 200 day moving averages for the first time since then.
Disappointing U.S. manufacturing data is seen exacerbating concerns in a market already worried by U.S. Fed's decision to taper asset purchases.
Index heavyweights Tata Consultancy Services is down 2 percent and Infosys Ltd falls 1.3 percent on concerns about weakness in core U.S. market.
Other blue chips including ICICI Bank Ltd , HDFC Bank Ltd and ONGC Ltd all down more than 1 percent.
(Reporting by Himank Sharma)