The 30-share Sensex slipped below 31,000-mark, to trade at 30,947, down 175 points or 0.53 per cent.
Benchmark indices ended the day higher, after Prime Minister Narendra Modi announced a stimulus package of Rs 20 lakh crores to be detailed later today by Finance Minister, Nirmala Sitharaman.
Major losers in the Sensex pack were M&M, HCL, Maruti, ITC, Heromoto Corp, TCS, Axis Bank, ICICI Bank, HDFC Bank, IndusInd Bank, Bajaj Auto and Sun Pharma, falling upto 3.37 percent.
At 9:25 am, the Sensex dropped by 131.04 points, or 0.42 percent, to 30,991.85 while the Nifty declined 43.85 points, or 0.48 percent, to 9,098.90.
According to Gaurav Dua, Sr VP, Head Capital Market Strategy and Investments, Sharekhan by BNP Paribas, equity markets are expected to appreciate the measures and not celebrate it with a big surge due to two key uncertainties - mechanism to fund the relief package, and quantum of immediate outflow from the government coffers.
Foreign portfolio investors (FPIs) sold stocks worth ₹2,152 crore in the cash segment on Thursday putting tremendous pressure on the markets. In the previous session, the BSE barometer settled 885.72 points or 2.77 percent lower at 31,122.89, while the broader Nifty tanked 240.80 points, or 2.57 percent, to close at 9,142.75. Fears over the return of COVID-19 as World Health Organisation (WHO) subtly warned that the virus may never go away with the new reported cases in South Korea and China, led European indices such as FTSE 100, DAX and CAC 40 to dip by 2.31 per cent, 1.80 per cent and 1.99 per cent each. Other Asian indices such as Hang Seng, Nikkei and KOSPI also closed in red, down by 1.45 per cent, 1.74 per cent and 0.80 per cent, respectively.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul closed with losses.
The total number of COVID-19 cases in India has jumped to 78,003 on Thursday, including 49,219 active cases, 26,234 discharged, 1 migrated, and 2,549 deaths. Stock exchanges in Europe were trading on a positive note in early deals.
Global oil benchmark Brent crude futures slipped 1.30 per cent to United States dollars 29.59 per barrel.
Globally, the number of coronavirus cases has crossed 44.43 lakh and the death toll has topped 3.02 lakh.