The BSE Sensex dips to 0.19 percent – its lowest since June 5, while Nifty plunges to 0.25 percent, heading for their second straight day of declines.

Domestic-oriented stocks fall on profit-taking: Larsen & Toubro (LART.NS) falls 2 percent while ICICI Bank (ICBK.NS) is down 1.1 percent.

Falls also track weak Asian stocks as crude extended gains and tested nine-month highs on fears the insurgency in Iraq could worsen and affect oil exports.

However, Tata Consultancy Services Ltd (TCS.NS) gains 1.2 percent after the company kept its outlook on first-quarter margins and revenue unchanged on Friday.