After having opened firm, the markets reversed all the morning gains and plunged into the red in late morning trades. The BSE Sensex is at 16,651, down 59 points and the S&P CNX Nifty is at 5,004, down 9 points. The BSE benchmark index had, earlier, touched a high at 16,844 and a low of  16,546.

The broader markets are trading on a mixed note with BSE Mid0cap index at 6,340, up 0.1% and the small-cap index almost unchanged at 7,190.

Among the sectoral indices, BSE Capital Goods, Bankex and FMCG indices are leading the losses, down nearly a percent each. Pipavav Defence & Offshore, Larsen & Toubro, BEML, Usha Martin and Praj Industries, down 1-4% each, are the major losers among the Capital Goods stocks.

From the financials' sector, ICICI Bank, Axis Bank, HDFC, Yes Bank and Bank of Baroda, down 1-2% each, are the major losers.

Among the individual stocks, Kingfisher Airlines is trading lower by 4% at Rs 25 on back of news reports that the company has lost more than 50% of net worth. Reports further suggested that the company needs to infuse required funds to continue as a "going concern", its auditor said in the company's annual report.

Maruti Suzuki has dropped nearly 2% to Rs 1,075 this morning on reports that the workers' stir at the company's Manesar plant has now spread to other units.

The overall market breadth is positive as 1,199 stocks have advanced against 1,026 declining ones on the BSE.