Mumbai: The benchmark BSE Sensex cut initial losses but was still down by 292 points following selling pressure in metal, banking, IT, auto, teck, power and FMCG sectors triggered by weak Asian stocks amid Grexit fears.
The barometer index hit a low below the psychological 28,000 mark at onset of trading session.
The market breadth indicating the overall health of the market was also weak.
The Sensex resumed lower at 27,857.20 and hovered in a range of 27,946.68 and 27,774.80 before quoting at 27,800.40 at 1105 hrs a loss of 292.39 points or 1.04 per cent.
The 50-share Nifty fell by 77.40 points or 0.91 per cent to 8,407.50 at 1105 hrs.
Major losers were, Vedanta by 4.42 per cent, Tata Motors (2.84 pc), Hindalco (2.67 pc), Tata Steel (2.58 pc), ICICI Bank (2.21 pc), SBI (1.75 pc), Axis Bank (1.65 pc), BHEL (1.47 pc), Infosys (1.40 pc), ONGC (1.31 pc), Larsen (1.25 pc), HDFC (1.22 pc) and Lupin (1.13 pc).
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.29 crore last Friday, as per provisional data.
While, Domestic institutional investors (DIIs) sold shares worth a net Rs 220.61 crore.
Asian stocks edged lower early today, as Greece voted against accepting further austerity, increasing the risk of the country's exit from the euro zone.
Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.86 per cent to 5.01 per cent.
Greeks overwhelmingly voted against their international creditors' conditions for further bailout aid, in a result that could deepen the rift between Greece and the rest of Europe and push the country out of the Eurozone.