Key benchmark indices extended slide and hit fresh intraday low in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex, was down 464.46 points or 1.28% at 35,790.11. The Nifty 50 index was down 152 points or 1.39% at 10,758.10. Metal and mining stocks dropped. Telecom stocks declined. Negative global stocks weighed on the domestic bourses.

Trading for the day began on a subdued note as the key benchmark indices drifted lower in early trade on negative Asian stocks. Key indices cut losses in morning trade. Stocks once again turned weak in mid-morning trade after latest data showed that manufacturing activity slowed in December. Shares extended intraday fall in afternoon trade.

The S&P BSE Mid-Cap index was off 1.25%. The S&P BSE Small-Cap index was off 0.84%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 826 shares rose and 1607 shares fell. A total of 150 shares were unchanged.

Mahindra & Mahindra (down 4.33%), Vedanta (down 4.25%), Tata Steel (down 3.86%), Bharti Airtel (down 2.82%) and Tata Motors (down 2.74%) were the major Sensex losers.

Metal and mining stocks dropped. Vedanta (down 4.03%), JSW Steel (down 4.48%), Tata Steel (down 3.61%), Steel Authority of India (Sail) (down 2.43%), National Aluminium Company (down 2.06%), Hindustan Zinc (down 1.78%), Jindal Steel & Power (down 2.03%), Hindalco Industries (down 3.68%) and Hindustan Copper (down 2.49%) edged lower.

NMDC rose 1.46%. NMDC announced that its board will meet on 8 January 2019, to consider buyback of the fully paid-up equity shares of the company. The announcement was made after market hours yesterday, 1 January 2019.

Telecom stocks declined. Bharti Airtel (down 268%), Vodafone Idea (down 2.65%), MTNL (down 9.28%), Tata Teleservices (Maharashtra) (down 1.49%) and Reliance Communications (down 4.52%) edged lower.

On the macro front, the health of India's manufacturing economy improved further at the end of the year, as companies continued to scale up production and employment in response to strong inflows of new business, data released today showed. Posting 53.2 in December, from 54 in November, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) was consistent with a further improvement in operating conditions across the sector.

Overseas, European and Asian shares fell after data showed Chinese factory activity contracted in December. China's factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken, data released today showed. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 49.7 in December from 50.2 in November, marking the first contraction since May 2017.