Meanwhile, investors remain cautious ahead of the WPI numbers due to be released later during the day.

At 11.45 AM, the Sensex was down 89 points at 27,873 and the Nifty was down 28 points at 8,432. The broader markets are however, outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3% each.

The market breadth is firm on the BSE with 1,343 advances versus 1,047 declines.

On the sectoral front, BSE Auto, Bankex, IT indices are trading lower up to 0.7%. However, BSE Metal, Healthcare, Oil & Gas indices are trading higher by 0.5% each.

Rate sensitive stocks are declining across the exchange after the increase in CPI reduced hopes of a further rate cut. Tata Motors, SBI, ICICI Bank, HDFC, M&M, HDFC Bank and Maruti Suzuki are trading lower between 0.2-2%.

Credit Suisse has downgraded Eicher Motors saying that the stock has become over expensive. The stock is down 1.6%.

Shares of pharmaceutical companies are in focus, with frontline drug makers such as Dr Reddy’s Laboratories, Aurobindo Pharma, Glenmark Pharmaceuticals, Alembic Pharma and Fortis Healthcare touching lifetime highs today.

Dr Reddy’s Laboratories is up 1 % after it launched Memantine hydrochloride tablets of 5 mg and 10 mg.

Aurobindo Pharma is up 0.5%, after the company received final approval from the US Food and Drug Administration (UFDA) to produce and sell Flecainide Acetate Tablets -- used for regulating heart rate -- in the American market.

Petron Engineering are locked at the upper circuit of 20% after the company reported more than three-fold jump in net profit of Rs 10.04 crore for the first quarter ended June 30, 2015 (Q1) on the back of higher operational income and other income.

Ramco Systems has surged 12% after the company announced the signing of multi-million dollar tech transformation deal with Cobham Aviation Services.

DCB Bank inches up 1.4% ahead of its June quarter earnings.

Ashiana Housing jumps 3% after the company said in a notice to BSE that it is in pact with Bengal Shriram Hi Tech City Pvt. Ltd for the development of a senior living and regular housing project on a piece of land measuring 19.72 acres in Kolkata.

IIFL Holdings Ltd surges 20% to Rs.222 after Fairfax India Holdings arm, FIH Mauritius Investments, made an open offer to buy up to 83.1 million shares of IIFL Holdings at Rs.195 apiece.