Selling resumed on the Indian bourses once again as benchmark indices fell sharply in trade following a poor set of data points.
GDP data which came in at 7 per cent lagged estimates, while manufacturing PMI slowed and core sector growth fell. To compound misery data point from China was also poor, which added to fresh selling pressure.
Banking stocks were the biggest drag on the market after fears that a sharp lending cut by HDFC Bank could spark a rate war and reduce margins for the sector.
Axis Bank, Canara Bank, State Bank of India, Punjab National Bank, Bank of Baroda, IndusInd Bank and Yes Bank were the major losers from the space.
The pharma sector which has so far been resilient also lost ground with stocks like Glenmark Pharma, Divis Labs and Cipla among the major losers. In fact, all of the banking stocks ended the day with losses.
IT stocks were the only ones that managed to stay resilient in the market carnage with TCS and Infosys managing to end the day flat.
Meanwhile, markets across Europe were trading deep in the red with the German DAX, the UK's FTSE and the French CAC all down more than 2 per cent.