Benchmark indices opened the day lower as global markets traded weak, after the US Dow slumped a huge 150 points, even as US Fed Chair, Janet Yellen, once again hinted at an interest rate hike in the US.
The Sensex dropped 64 points in trade at 26,052 points, while the Nifty dropped 23 points at 7908 points.
Banking stocks continued to see declines over worries that the new lending norms may see contraction in Net Interest Margins. Among the major losers were Punjab National Bank, State Bank of India, Bank of Baroda and ICICI Bank.
TV Today, which had rallied substantially on Wednesday gave up gains and was down 1 per cent.
Mid cap stocks were also trading lower in line with the index stocks with Voltas dropping one per cent and Just Dial down a huge 4 per cent in trade.
Meanwhile, markets across Asia were trading with losses with the Seoul Composite seeing losses of 1 per cent, while the Japanese Nikkei was down 0.5 per cent.