Benchmark indices are trading in the red after opening higher in the morning.
The Sensex is down 354 points at 38,542, while the Nifty is down 96 points to 11,488.
All sectoral indices are trading in the red amid concerns over economic growth and earnings recovery.
Among the sectors, Nifty Auto and PSU Banks are lagging the most by 1.8% and 1.6%, respectively.
Nifty Auto is being dragged by Amara Raja and Exide, both down 5%, while PSU Banks are lagging owing to a fall in Bank of Baroda and Bank of India, down 3% and 2% respectively.
Bajaj Finance & Bajaj Finserv are the top losers on the Nifty, while Titan and NTPC are top gainers.
India Vix is up ~5% 12.2775.
Meanwhile, Brent crude is up ~2% on claims that the US Navy has downed an Iranian drone, escalating tensions in the Middle East.
The rupee also gained 13p and is at 68.82/$.