Indian markets opened the day marginally higher, but quickly moved into the red despite buying in IT Stocks.
Negotiations on the Greece debt crisis entered the final stages with Euro Finance Ministers set to meet on Saturday in what could be the final act in prolonged negotiations.
Other Nifty stocks that gained ground were Tata Motors and Mahindra and Mahindra. Larsen and Toubro which has had a fabulous run in the last few trading sessions lost ground on profit booking.
Banking stocks were also weak with private sector banks like ICICI Bank, Axis Bank and Indusind Bank all lower.
PSU banking stocks were the bigger losers from the space as the Reserve Bank of India continued to caution on poor asset quality. Canara Bank, Union Bank, Syndicate Bank, Bank of Baroda and Punjab National Bank all dropped.
IndusInd Bank was also down after succesfully placing shares to institutional investors. Meanwhile, markets across Asia were trading with losses on worries of a likely default by Greece on its debt. The Shanghai Composite lost another 3 per cent in trade, while the other losers were the Japanese Nikkei and the Korean Kospi.