Among top Nifty losers were Axis Bank and Hindustan Petroleum Domestic stock markets started Thursday's session on a lacklustre note tracking weakness in Asian peers.
The Nifty fell 27 points to touch 10,827 in early trade, while Sensex declined as much as 85 points to hit 36,127.
Weakness in banking and financial services stocks pulled markets lower.
At 9:32 am, Sensex traded 29 points lower at 36,183 and Nifty was down 16 points at 10,838.