The BSE Sensex closed the day lower by 126 points, while the Nifty closed the day lower by 39 points at 4950 points. Europe once again continued to hold centre stage. Fears of banking problems in Spain and the rising interest rates weighed on markets today with Europe opening sharply lower.
The UK's FTSE, the German DAX and the French CAC were down more than one per cent.
Asian markets too ended lower with the Shanghai Composite, Hong Kong's Hang Sang and Japan's Nikkei all closing the day with losses.
Tata Motors plunged more than 11% today, after analysts were not enthused by the company's performance. The worries stem over the concerns over sales of JLR. Among other shares that lost ground today were Reliance Infra, IDFC and BHEL.
Markets are expected to continue to exhibit volatility over continued concerns on Greece and Spain. Indian markets are likely to react to global developments.