Benchmark indices ended the day lower as global cues remained weak, following a drop in crude prices. The Reserve Bank of India's decision to keep interest rates on hold also had an impact on stocks.
The Sensex ended the day with a drop of 285 points, while the Nifty fell 100 points in trade. Leading the set of losers once again were banking stocks, after the RBI maintained a status quo on interest rates. State Bank of India and ICICI Bank both hit new 52-week lows in trade. Axis Bank and Bank of India were the other banking stocks that fell in tRade.
Tata Steel saw the biggest drop ending the day almost 5 per cent lower, while Cipla was the other big loser from the space losing as much as 4 per cent.
Shares in IDFC Bank gained ground after a brokerage firm raised the target price on the stock. Godrej Properties on the other hand ended lower, after its results were marginally below expectations.
Just Dial, which had been hammered in the last few trading sessions, finally found support and ended the day nearly 5 per cent higher.
Meanwhile, most of the European markets were trading deep in the red with the German DAX and the French CAC down almost 1 per cent each.