The start of the session marked the first opening of the markets after presentation of the Interim Budget 2019-20 in Parliament last week. In early trade, the Sensex shed as much as 155 points to hit 36,314 and the Nifty dropped 49 points to touch 10,844 on the downside.
At 9:30 am, the Sensex was down 101 points at 36,368 and the Nifty traded at 10,861, 32 points weaker from the previous close.
Top laggards on the 50-scrip index were Zee, Yes Bank, Hindustan Petroleum, Indiabulls Housing Finance and Bharti Airtel, trading between 2.4 per cent adn 3.1 per cent lower.
The market breadth favoured the declines with an advance-decline ratio of 1:2. On the NSE, 506 stocks traded with gains against 1,042 that traded lower.
The weakness in the domestic stock markets came despite strength in Asian peers, where equities hovered near four-month highs, after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong US job and manufacturing data.
MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat. It had scaled a four-month peak on Friday along with a surge in its global peers.