The 30-share barometer fell 93.42 points, or 0.34 per cent, to 26,946.34 after opening in positive zone. The gauge had lost 431.03 points in the previous three sessions.

In the 50-share index, Cipla, Kotak Mahindra Bank, Tech Mahindra, Ambuja Cements and ONGC gained between 1.40 per cent and 2.55 per cent. On the other hand, Axis Bank, ICICI Bank, Adani Ports, IndusInd Bank and YES Bank slid between 3 per cent and 7.20 per cent.

Investors were cautious ahead of October series expiry in the derivatives segment on Thursday, brokers said.

Earlier, the listing agreement was a bilateral agreement between the stock exchange and the company and market regulatory SEBI didn't have regulations on this. Thus each company's agreement with stock exchange could be at variance and lacking the full force of SEBI's rigour.

Besides, a weak opening in the domestic equity market put pressure, dealers said.

"Markets started the week on a positive note on the back of strong quarterly corporate earnings, mainly led by index heavyweight Reliance Industries," said Gaurav Jain, Director, Hem Securities.

Further, China posted its weakest quarterly economic growth since the global financial crisis on Monday, raising pressure on policymakers to cut interest rates further and roll out other support measures to avert a sharper slowdown.

In early trade, the 30-share Sensex cracked below the 27,000-mark by dropping 93 points to hit a low of 26,917.12 as investors booked profits in recent gainers after the country’s exports in September dropped for the tenth straight month.

Furthermore, profit-booking by participants after Thursday's gains, dampened sentiments.

This is on top of 17 SMEs already got listed on capital markets with public issues worth Rs 134 crore in the first five months (April-August) of the ongoing fiscal.