Indian equities continue to trade on negative note on Tuesday ahead of September month F&O expiry this week. At 2.26 p.m., the Sensex was trading down 296.27 points or 1.09% at 26,910.47 with 24 components falling. Meanwhile, the Nifty was trading lower by 82.00 points or 1.01% at 8,064.30 with 41 components falling.

China provisional manufacturing purchasing managers' Index (PMI) rose to 50.5, 2-month high in September 2014 compared with 50.2 in August, according to HSBC. Meanwhile,
Chinese manufacturing output index came at 51.8 in September, was unchanged from August's two-month low.

Realty index dropped the most with a fall of 4.05% followed by Metal (1.93%) and Capital Goods (1.83%). On the other hand FMCG climbed by 0.16%. Tata Motors, Cipla, Hindalco and ICICI Bank were top losers in the Sensex pack. On the other hand, HUL, ITC, Maruti Suzuki and Wipro were major gainers in the benchmark index.

The BSE Mid and small caps underperformed their larger counterparts declining -1.26% and -1.63% respectively. Overall market breadth was negative with 903 advances against 2,051 declines.

Shares of Sanofi, Pidilite Industries, Tech Mahindra and IFCI are active in the day's trade. Sanofi witnessed a sharp rise in share prices of 11.75% after the National Pharmaceutical Pricing Authority (NPPA) has withdrawn guidelines for price control of 108 formulations.

Pidilite Industries registered a rise in share prices of 1.12% today after it announced that the parties have closed and completed the acquisition of the adhesive business of Bluecoat.

Tech Mahindra shares witnessed a rise of 0.36% after it has been selected by Ahlstrom to manage its Information Technology operations.

Shares of IFCI witnessed a rise of 0.87% after the company announced partial divestment of its shareholding in Tourism Finance Corporation of India (TFCI) in financial year 2014-15.