Benchmark indices ended the day lower as Chinese markets crashed 5 per cent, even as authorities in the country failed to calm nerves.
The Sensex ended the day lower by 109 points, while the Nifty dropped 38 points in trade. Leading the set of losers in trade were banking heavyweights State Bank of India and ICICI Bank, which fell to new 52-week lows. Other banking stocks like Bank of Baroda, Punjab National Bank and Canara Bank also fell to fresh 52-week lows.
IT stocks were also weak in trade ahead of results to be declared by Infosys on Jan 14. Wipro was the biggest loser from the space, followed by TCS.
Select Nifty stocks that gained ground in trade were Tata Motors , Axis Bank and Maruti. However, the biggest gainer was Reliance Industries, which jumped 3 per cent in trade.
Oil exploration stocks were extremely weak in trade with ONGC down 3 per cent, while Oil India shed as much as 4 per cent. Brokerages see a further down side in Oil prices which led to a slump in the prices of these stocks.
Meanwhile, the European markets which opened deeply in the red, saw some recovery and were trading with gains.