MUMBAI: Indices slipped in the red in line with other global peers after Standard & Poor’s cut Greece’s rating to junk and lowered Portugal two notches. Moreover, with the F&O expiry due on Thursday, volatility is expected to be high.

At 9:10 am, Bombay Stock Exchange’s Sensex was at 17493.72, down 196.90 points or 1.11 per cent. The index hit a low of 17461.35 and high of 17643.59 in trade so far.

National Stock Exchange’s Nifty was at 5246.35, down 62 points or 1.17 per cent. The index touched a low of 5234.35 and high of 5308.25 in early trade.

“The Nifty is likely to open lower on account of sovereign downgrades of Greece and Portugal leading to global selloff. The Nifty is likely to find support around 5250 where some buying may emerge but a wait and watch approach is recommended. Medium term outlook on the Nifty remains bullish as far as it remains above the key support level in range of 5140-5180.

We remain selectively bullish on banking space from medium term outlook. Weakness is expected in ACC, HDIL and JPA while JSPL & LIC housing appear strong for further advance,” said Edelweiss report.

BSE Midcap Index was down 1.11 per cent and BSE Smallcap Index moved 1.18 per cent lower.

Amongst the sectoral indices, BSE Realty Index fell 1.82 per cent and BSE Metal Index slipped 1.60 per cent. BSE FMCG Index was up 0.17 per cent.

Jaiprakash Associates (-2.52%), DLF (-2.51%), Hindalco Industries (-2.26%), RIL (-1.93%) and Reliance Infra (-1.82%) led the Sensex decline.

Sun Pharma (1.10%), HUL (0.77%) and ITC (0.52%) were the only index gainers.

Market breadth was negative on the BSE with 1463 declines against 388 advances.

Meanwhile, The Dow Jones Industrial Average dropped 213.04 points, or 1.90 per cent, to 10,991.99. The Standard & Poor's 500 Index slid 28.34 points, or 2.34 per cent, to 1,183.71. The Nasdaq Composite Index lost 51.48 points, or 2.04 per cent, to 2,471.47.

Equities across Asia declined as well on Eueopean credit rating cuts which sent the Nikkei down 2.47 per cent and Kospi fell 1.07 per cent lower. The Hang Seng dropped 1.18 per cent and Straits Times shed 1.41 per cent.