At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 416.07 points or 0.66% to 62,553.06. The Nifty 50 index lost 109.55 points or 0.59% to 18,524.30.

The broader market outperformed frontline indices, the S&P BSE Mid-Cap index rose 0.12% while the S&P BSE Small-Cap index gained 0.41%.

The market breadth was negative. On the BSE, 1,613 shares rose and 1,854 shares fell. A total of 125 shares were unchanged.

Investor sentiment took a hit after disappointing economic data from China brewed more concerns over sluggish demand and weak recovery in the world's second largest economy.

Numbers to track:

The yield on India's 10-year benchmark federal paper was down 0.31% to 6.989 from previous close of 7.011.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.7000, compared with its close of 82.6700 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement fell 0.18% to Rs 59,840.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.40% to 104.58.

The United States 10-year bond yield declined 1.37% to 3.650.

In the commodities market, Brent crude for July 2023 settlement fell 19 cents or 0.26% to $73.35 a barrel.

Buzzing Index:

The Nifty Financial Services declined 1.24% to 19,363.55. The index rose 1.91% in past three trading sessions.

Axis Bank (down 2.74%), Housing Development Finance Corporation (down 1.87%), HDFC Bank (down 1.77%), State Bank of India (down 1.71%) Shriram Finance (down 1.19%) Bajaj Finserv (down 0.91%), ICICI Lombard General Insurance Company (down 0.84%), SBI Cards & Payment Services (down 0.77%), Bajaj Finance (down 0.76%) and Cholamandalam Investment & Finance Company (down 0.71%) declined.

On the other hand, SBI Life Insurance Company (up 1.16%) ,REC (up 0.68%) and Muthoot Finance (up 0.46%) advanced.

Stocks in Spotlight:

Greenply Industries tumbled 4.22% after the company's consolidated net profit tumbled 61.79% to Rs 11.07 crore on 4.59% increase in net sales to Rs 469.16 crore in Q4 March 2023 over Q4 March 2022.

Uflex declined 2.40% after the company's net profit tumbled 99.7% to Rs 0.88 crore in Q4 FY23 as compared with Rs 350.28 crore in Q4 FY22. Revenue from operations declined 14.03% to Rs 3,320.18 crore in Q4 FY23 as compared with Rs 3,861.86 crore in Q4 FY22.

Graphite India fell 0.37% after the company reported 69.5% drop in consolidated net profit to Rs 29 crore on 3.4% decline in revenue from operations to Rs 815 crore in Q4 FY23 over Q4 FY22.