The broader NSE Nifty benchmark declined as much as 102.55 points to hit 11,257.35 in the first few minutes of trade. Losses in banking and financial services, metal and pharma stocks pulled the markets lower.
The Sensex declined to as much as 37,957.56 , down 347.85 points from its previous close. At 9:21 am, the Sensex traded 301.18 points - or 0.79 per cent - lower at 38,004.23 while the Nifty was down 94.10 points - or 0.83 per cent - at 11,265.80.
Top percentage losers on the 50-scrip benchmark index at the time were Axis Bank, Hindalco, Coal India, Larsen & Toubro and Sun Pharma, trading between 1.99 per cent and 4.00 per cent lower.
The Sensex and Nifty had ended 0.94 per cent and 1.00 per cent lower on Tuesday amid volatile trade. The markets remained shut for Mahatma Gandhi Jayanti the next day.