In a highly volatile trade, the market benchmark BSE pared its initial surge and slipped 19.16 points in late morning deals on emergence of selling in bank, auto, oil&gas, power, consumer durable and capital goods stocks.
Earlier the market gained amid value buying in realty, FMCG, IT and teck segments as sentiment got a boosted on government's decision not to levy Minimum Alternate Tax (MAT) on gains made by FIIs.
Weak Asian cues on China economic health concerns and subdued domestic macro fundamentals with latest data of easing of Indian manufacturing PMI overlapped the sentiments.
Country's key macro data with slower GDP growth of June quarter, subdued Asian cues amid weakness in China's economy, loomed over the trading sentiments.
The BSE Sensex resumed gap-down at 25,891.95 and moved to an high of 25,939.37 and a low of 25,666.74, it was quoting 25,677.28 at 1110 hours, showing a loss 19.16 points or 0.07 per cent over its previous close.
The 50-share Nifty was trading flat, marginally down by 0.80 points or 0.02 per cent to 7,787.55 at 1110 hours.
Major losers were, BHEL 3.31 per cent, followed by Axis Bank 2.91 per cent, NTPC 2.83 per cent, SBI 2.80 per cent, Tata Motors 2.31 per cent and Vedanta 2.06 per cents.
While gainers included TCS 2.33 per cent, Lupin 2.04 per cent, ITC 1.68 per cent and RIL 0.97 per cent.
Meanwhile, foreign investors sold shares worth Rs 675.32 crore yesterday, as per provisional data.
In overseas markets, Asian stocks were trading lower on continued concerns over the health of China's economy.
Key benchmark indices in China, Hong Kong, South Korea and Indonesia were down 0.01 per cent to 1.05 per cent.
Key indices in Singapore, Taiwan and Japan were up 0.38 per cent to 1.32 per cent.
