The Indian benchmark indices opened with deep cuts as the Sensex plunged over 150 points in the red and the Nifty50 retreated from yesterday's record high level.
This can be seen as a trigger from global markets after Asian stocks fell in early morning trade today. The US dollar was stuck near six-month lows against a basket of currencies as uncertainty mounted over President Donald Trump's interference with a federal investigation.
Japan's Nikkei shed 1.5 percent, Australian shares lost 1.2 percent and South Korea's KOSPI declined 0.5 percent.
Equities in Asia took cues from Wall Street, where the Dow and S&P 500 both sank about 1.8 percent overnight following reports that Trump tried to influence a federal probe.
In the domestic front, a weak rupee opening, uncertainity over GST rates and erratic corporate earnings could have likely contributed to the market fall.
The rupee today opened 22 paise lower, at 1-week low of 64.37 against the dollar.
At 9.28 am, the BSE Sensex was trading at 30,547.79, down 110.98 points (0.36%) while the Nifty50 was trading at 9,487.10, 38.65 points lower (0.41%).
In the broader market, the S&P BSE Midcap index fell 0.4 per cent, while the S&P BSE Smallcap shed 0.3 per cent.
Wipro, TCS and HDFC gained on the BSE 30 while ICICI Bank, Adani Ports, Dr Reddy's and Axis bank lost the most on the index.
In other news:
The 2-day GST Council meet will start later in the day today. Over the next two days the Council will be finalising the rates for goods and services that will come into effect from July 1. The tax brackets are: 5, 12, 18 or 28 per cent.
The meet is being conducted in Srinagar with participation from 29 states and union territories, along with Finance Minister Arun Jaitley, and senior officials from the revenue department.