Benchmark indices recovered more than half of losses on short covering in beaten down stocks.
The 30-share BSE Sensex was down 132.88 points at 33,557.21 and the 50-share NSE Nifty fell 48.10 points to 10,076.80.
The market breadth also improved as about five shares declined for every four shares rising on the BSE against 3:1 in opening.
Benchmark indices remained under pressure in late morning deals, though both were off their early trade lows. Banking & financials, technology and FMCG stocks weighed down the market.
The 30-share BSE Sensex was down 169.27 points to 33,520.82 and the 50-share NSE Nifty fell 57.50 points to 10,067.40
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