Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The Nifty took crucial support at 11,500 level. At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 125.65 points or 0.32% at 38,605.17. The Nifty 50 index was down 40.25 points or 0.35% at 11,515.05

In broader markets, the S&P BSE Mid-Cap index was down 0.5%. The S&P BSE Small-Cap index was down 0.39%.

The market breadth was tilted towards the sellers. On the BSE, 873 shares rose and 1260 shares fell. A total of 115 shares were unchanged.

Most Anil Ambani group stocks witnessed selling. Reliance Infrastructure (down 4.70%), Reliance Capital (down 3.97%) and Reliance Power (down 0.74%) declined. Reliance Communication, however, was up 3.59%.

Media reports suggested that State Bank of India (SBI) has commissioned a probe against Reliance Group chairman, Anil Ambani, after SBI flagged transaction of Rs 5,500 crore in books of Reliance Communications, Reliance Telecom and Reliance Telecom Infrastructure. SBI alleged evergreening of loans (providing a fresh loan to repay an old loan), fund diversion and preferential transactions in these companies. The probe which looked at transactions between May 2017 and May 2018, has covered nearly 1,00,000 book entries.

Ingersoll-Rand (India) was down 0.11% to Rs 610. The company announced that Vikas Goel, company's chief financial officer (CFO) has voluntarily resigned from the services of the company. The board has accepted his resignation which will be effective from 19 July 2019.

Private sector bank stocks were trading higher. RBL Bank (up 1.51%), Kotak Mahindra Bank (up 0.34%), ICICI Bank (up 0.3%), HDFC Bank (up 0.25%) and IndusInd Bank (up 0.18%) edged higher. While, AU Small Finance Bank (down 1.01%) and Axis Bank (down 0.92%) edged lower

Yes Bank was up 1.26%. Wirecard, the global innovation leader for digital financial technology, announced a partnership with Yes Bank to continue driving financial inclusion in the country. The partnership will expand the scope of India's Aadhaar Enabled Payment System, a biometric digital payment system developed by the National Payments Corporation of India. As a result, digital payments and banking transactions will be more readily accessible to Indian residents, including those living in remote areas.

Most PSU Banks faced selling. Punjab National Bank (down 1.75%), State Bank of India (down 1.41%), Bank of Baroda (down 1.07%), Union Bank of India (down 0.77%) and Bank of India (down 0.64%) declined. Syndicate Bank (up 2.32%) and Allahabad Bank (up 0.41%) gained.

Oriental Bank of Commerce was down 0.06% to Rs 89.15. The bank announced that it has changed Marginal Cost of funds based Lending rate (MCLR). For overnight MCLR the revised rate is 8.2% from 8.3%. 1 month MCLR has changed to 8.25% from 8.35%. 3 months MCLR has changed to 8.45% from 8.5%. 6 months MCLR has changed to 8.55% from 8.6% and 1 year MCLR has changed to 8.65% from 8.7%.

The S&P BSE Bankex was down 22.99 points or 0.07% at 34,349.11.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 0.8% at 13.7975.

On the options front, Nifty option chain for 25 July 2019 expiry showed a maximum call open interest (OI) of 31.84 lakh contracts at the 12000 strike price. Maximum put OI of 19.47 lakh contracts was seen at 11500 strike price. Options data suggested a trading range for Nifty will be between 11,500 and 12,000