Meanwhile, India's services sector activity contracted for the first time in 13 months in May, largely due to decline in new order flows amid competitive pressure and natural disasters, an HSBC survey said today.

The 30-share Sensex resumed higher at 27,230.68 and hovered in a range of 27,276.22 to 26,975.79 before quoting 26,984.65 at 1115 hrs, showing a sharp fall of 203.73 points or 0.75 percent.

The NSE Nifty was also quoted lower by 67.05 points or 0.81 percent at 8,169.40 at 1115 hrs. Major losers were Tata Motors at 4.22 percent, ITC 3.48 percent, Axis bank 1.94 percent, ICICI Bank 1.82 percent, HUL 1.80 percent, SunPharma 1.74 percent, Tata Power 1.73 percent, Vedanta 1.64 percent, Maruti 1.21, Bajaj Auto 1.06 and Hindalco 1.05 percent.

Meanwhile, Foreign portfolio investors sold shares worth Rs 594.14 crore yesterday, while domestic institutional investors bought shares worth Rs 271.64 crore yesterday, as per provisional data.

Globally, Asian shares were trading mixed. Key indices in China, Hong Kong, Singapore and South Korea were up by 0.16 percent to 0.61 percent. Indices in Taiwan, Japan and Indonesia were down by 0.17 percent to 1.55 percent.

In New York, the US stocks ticked lower overnight as a jump in bond yields weighed on utilities, but optimism that Greece may be close to a deal with its creditors limited losses.

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