The Sensex was last trading at 18,033 points and the Nifty was trading lower by 94 points at 5317. Out of the 50 Nifty components, 49 were trading in the red with only Ranbaxy Labs having a marginal green tick.
Banking stocks were the worst hit in trade with names like Axis Bank falling 3.5 per cent, Yes Bank dropping 7.33 per cent, IndusInd Bank down 5 per cent and ICICI Bank down 2 per cent. Fears of rising bond yields and mark to market losses for banks, weighed on their stock prices.
Bellweather FMCG and pharma stocks also came in for severe selling pressure with notable losers from the space being Sun Pharma, Glenmark and Lupin Labs from the pharma sector, while ITC and Hindustan Unilever also saw selling pressure.
IT stocks which had so far remained resilient also lost ground as there was no sector spared in the carnage.
The infra sector like the banking sector saw heavy selling pressure with Larsen and Toubro falling 2.27 per cent, Reliance Infra dropping 2 per cent and GMR infra falling almost 4 per cent.
Auto stocks which had been exhibiting some resilience in the last few months also saw heavy selling pressure. Notable losers from the space were Maruti Suzuki, M&M, Tata Motors and Bajaj Auto.
Meanwhile, markets in Asia were trading marginally lower with the Jakarta Composite losing another 4.87 per cent, following a 5 per cent loss on Monday. The Japanese Nikkei and the Hong Kong's Hang Sang also lost 1 per cent each.