Benchmark indices ended the day lower for the 4th straight day, bogged down by comments from the US Fed, which hinted at a likely interest rate hike in Dec.
Expiry to the F&O segment of the Oct series only compounded the selling pressure. The Sensex ended the day with losses of 204 points to close below the 27,000 points mark at 26,838 points, while the Nifty closed lower by 59 points at 8111 points.
Axis Bank fell for the second straight day in a row, as investors continued to worry over the bank's asset quality. The shares have lost almost 10 per cent in two trading sessions.
Nifty stocks that gained ground in trade were Tata Motors, Vedanta, Dr Reddy's, Tata Steel and Bajaj Auto.
Among non index stocks, Just Dial cracked a huge 10 per cent, after its results disappointed the street. Raymond was down for a second day in a row on poor quarterly numbers.
The mid cap index ended the day marginally lower, though select mid cap stocks like CESC and Sanofi rallied 3 and 4 per cent respectively.
Most of the banking stocks ended the day lower, however, Yes Bank gained after the company's results beat expectations.
Meanwhile, markets in Asia ended the day lower, though select markets like the Japanese Nikkei and the Shanghai Composite ended the day with gains.