Key benchmark indices were range bound near the day's low in afternoon trade. At 13:27 IST, the barometer index, the S&P BSE Sensex, was down 295.79 points or 0.82% at 35,588.62. The Nifty 50 index was down 93.75 points or 0.87% at 10,689.15.

Weakness in Asian stocks weighed on the domestic bourses. Investors closely watched meeting by the Organization of the Petroleum Exporting Countries (OPEC). OPEC and other top oil producing countries are set to meet later on Thursday in Austria, with a series of issues on the line. Chief among those is the discussion surrounding crude output policy.

Investors also turned cautious in the run-up to the announcement of five state elections' results next week. The outcomes of the five state elections will likely set the tone for the general elections next year. Voting in Rajasthan and Telangana will take place on 7 December 2018 and the counting of votes in all the states will be done on 11 December 2018.

Trading for the day began on a subdued note as the key benchmark indices saw a gap-down opening on negative Asian stocks. Stocks extended initial losses in morning trade. Weakness persisted on the bourses in mid-morning trade as key indices hit intraday low due to selling pressure in index pivotals. Indices hovered near day's low in afternoon trade.

Provisional data released by the stock exchanges showing that local and foreign funds, both, were net sellers of Indian stocks yesterday, 5 December 2018, also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 357.82 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 791.59 crore.

The S&P BSE Mid-Cap index was down 1.03%. The S&P BSE Small-Cap index was down 1.03%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 671 shares rose and 1644 shares fell. A total of 133 shares were unchanged.

Maruti Suzuki India (down 3.66%), Tata Motors (down 2.63%), Asian Paints (down 1.98%), IndusInd Bank (down 1.9%), Yes Bank (down 1.81%) and Kotak Mahindra Bank (down 1.78%), were the major Sensex losers.

Power Grid Corporation of India rose 0.55% after the company has been declared as the successful bidder under tariff based competitive bidding to establish transmission system for evacuation of power from 2 x 660 MW Jawaharpur Thermal Power Project and construction of 400 kV substation at Firozabad along with associated transmission lines' on build, own operate and maintain (BOOM) basis. The announcement was made after market hours yesterday, 5 December 2018.

The project is an intra-state transmission system of Uttar Pradesh and comprises 765kV, 400kV, 220kV and 132kV lines apart from establishing a new 400/220/132 kV Substation at Firozabad, Uttar Pradesh. The Letter of Intent (LoI) has been received on 5 December 2018. This is the first intra state transmission system project won by Power Grid Corporation of India under tariff based competitive bidding.

Sun Pharmaceutical Industries rose 2.26% on bargain hunting after a recent slide. Shares of Sun Pharmaceutical Industries fell 15.99% in three trading sessions to settle at Rs 413.60 yesterday, 5 December 2018, from its close of Rs 492.30 on 30 November 2018.

Sonata Software was up 3.34%. Sonata Software announced during trading hours today, 6 December 2018, that it has signed definitive agreement to acquire Scalable Data Systems, headquartered in Brisbane, Australia. Scalable Data Systems is a provider of business solutions in the Australian market, with a history of more than 25 years and has built a solid reputation in providing Microsoft Dynamics 365 F&O solutions for industry leading clients in Australia especially in the manufacturing and wholesale & distribution. Scalable's IP for Commodity Trading CTRM has now earned market leading reputation globally with due recognition accorded to the company as a Microsoft Gold and an ISV Partner.

On the political front, state assembly elections are being be closely watched. Polling in Rajasthan and Telangana will take place on 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election to the 90-member Chhattisgarh Assembly was held in two phases 12 and 20 November 2018. Counting of votes will be held across all the five states on 11 December 2018.

Overseas, Asian stock prices fell Thursday amid growing uncertainty about the global economy and President Donald Trump's tariff policies on China.

Meanwhile, Bank of Japan Governor Haruhiko Kuroda said economic risks from abroad could be severe. The US Federal Reserve's Beige Book report showed there were concerns about higher tariffs from a widening trade war, rising interest rates and tight labor markets. Trump's get-tough approach to trade was causing rising costs for manufacturers and weaker sales at companies, it said.

Trading in US index futures indicated that the Dow could slump 241 points at the opening bell today after Canada arrested a top executive of Chinese telecom giant Huawei Technologies at the request of the US, a move that is seen as exacerbating tensions between the US and China.

The US New York Stock Exchange and Nasdaq were both closed on Wednesday to mark the day of mourning for the late former President George H.W. Bush, who died on November 30 at age 94.