The Sensex ended the day lower by 109 points, while the Nifty closed the day with losses of 34 points. Among the losers in trade were GAIL, which dived 3.12%, while Hindalco, Jindal Steel and BPCL were the other significant losers from the Nifty.
ITC, however, stood out and ended the day with smart gains following a spectacular set of results posted by the company. In fact, a surge in the net profits of the company saw the shares scale a 52-week high.
Shares of Exide Industries fell almost 8%, after the company's net profit rose lower than expected. Indian Hotels dropped 5% after it chose to bid for Orient Express.
Among the Nifty stocks that ended the day with gains were Ambuja Cements, HCL Tech and Lupin Laboratories.
The banking sector came in for some heavy selling pressure with frontline banking names like State Bank of India, HDFC Bank, ICICI Bank and Axis Bank dropping.
Heavyweights Reliance Industries and TCS failed to provide any support to the market.
Meanwhile, markets in Asia closed the day on a weaker note, while European indices were trading deeply in the red on mounting worries over Spain.