The Sensex ended the day lower by 61 points, while the Nifty closed lower by 11 points. Sun Pharma dropped almost 5 per cent in trade on reports that there was a surprise audit at the company's Halol plant.
Coal India dropped 3 per cent after tee government announced a stake sale in the company along with ONGC.
Stocks that gained ground in trade was IDFC after the stock was upgraded by a foreign broking firm. Other shares that rallied were banking stocks like Punjab National Bank and State Bank of India.
Mid cap stocks also had a good trading session with Bharat Forge, Divis Labs and HPCL among the winners. NHPC, however, lost a huge 5 per cent in trade.
Bhushan Steel was up 5 per cent and was once again locked at the upper end of the circuit filter. PSU Banking stocks saw some good traction in trade with notable gainers being Andhra Bank, Bank of India and Syndicate Bank.
Meanwhile, markets across Europe were trading with marginal gains.