Mumbai: The benchmark BSE Sensex recovered from its initial heavy losses to regain the 26K-level, though lower by 280.54 points, while broader Nifty was trading below the crucial 8,000-level in late morning deals.
Barring IT and Teck sectors, rest all other segments led by banks, capital goods, consumer durables, metal, auto, realty, oil & gas and power witnessed sustained selling pressure.
Country's key macro-data with slower GDP growth of April-June quarter, subdued Asian cues amid weakness in China's economy, loomed over the trading sentiments.
The BSE Sensex resumed gap-down at 26,127, later dipped to 25,984.28 before quoting at 26,002.55 at 1138 hours, showing a fall 280.54 points, or 1.07 percent over its previous close.
The 50-share Nifty was trading down by 91.90 points, or 1.15 percent to 7,879.40 at 1138 hours.
Major losers were - Axis Bank 2.31 percent, followed by HDFC 2.27 percent, Bharti Airtel 2.09 percent, Hindalco 1.81 percent, Lupin 1.75 percent, among others.
Meanwhile, foreign investors sold shares worth Rs 551.19 crore on Friday, as per provisional data.
In overseas markets, Asian stocks traded lower after two surveys showed China's manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy.
Key benchmark indices in China, Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell 0.41 percent to 1.82 percent.
PTI
First Published: Tuesday, September 1, 2015, 10:27