MUMBAI: The BSE Sensex fell more than 1 percent in opening deals on Thursday, following the weaker lead of Asian markets.
At 9:57 a.m. (0427 GMT), the 30-share BSE Index was down 0.72 percent at 16,599.90 points, with 24 components declining.
The 50-share NSE Index was down 0.68 percent at 4,936.40.
The Sensex was seen opening lower, tracking weakness in global markets, with the expiry of monthly derivatives contracts expected to heighten volatility.
Global stocks declined on worries the US Federal Reserve may pull back on extraordinary measures to inject funding to shore up a still weak economy.
Telecom firm Bharti Airtel will be closely watched for any key developments regarding its proposed tie-up with MTN, with sources suggesting South African officials were set to meet officials from India's markets regulator, central bank and finance ministry in the day to discuss the deal.
Regulatory uncertainty continues to plague the proposed proposed tie-up with the deadline for the deal only a week away.
The country's no. 3 outsourcing firm Wipro will be in focus after it said late on Wednesday it had won a three-year IT services contract from US water utility Aquarion.
Nifty India stock index futures traded in Singapore were down 0.78 percent hinting to a weak open in the domestic market.
On Wednesday, the benchmark 30-share Sensex fell 0.99 percent or 166.93 points to 16,719.50 points, after rising 4.1 percent in the previous five sessions.
In Asia, MSCI's measure of other Asian markets was down 1.23 percent by 0347 GMT, while Japan's Nikkei rose 1.2 percent.
STOCKS TO WATCH
* Orchid Chemicals, after Wyeth sued the US drug regulator and requested a temporary restraining order or an injunction ordering the agency to withdraw or suspend its approval of the Orchid's generic version of its blockbuster Zosyn antibiotic.
* Tata Consultancy Services Ltd, after India's leading IT services firm said it secured a five-year project to build and operate a state-wide area network in southern Andhra Pradesh state. No financial details were disclosed.
