Benchmark indices, which dropped sharply in intra-day trade, managed to recover some lost ground, but, still ended the day with deep cuts.
European stocks saw a remarkable recovery with most of the indices trading with gains of near 2 per cent, leading to some recovery in Indian stocks. Banking worries in Europe, along with a global recession fear have spooked global stocks in the last 2 days.
PSU Banking stocks plunged after Central Bank of India, Dena Bank and Allahabad Bank all reported losses for the quarter.
Allahabad Bank saw the deepest cut of 8 per cent, while Andhra Bank dropped 6 per cent, PNB ended 7 per cent lower and Syndicate Bank fell near 5 per cent. Union Bank, IDBI Bank and Bank of Baroda dropped 4 per cent each.
Among the Nifty stocks that managed to hold ground were Reliance Industries, Mahindra and Mahindra, Sun Pharma and Maruti Suzuki.
Shares in Wonderla fell after the company reported numbers that lagged estimates. Tata Motors, Hindalco and State Bank of India were the biggest losers from the Nifty.
Tech stocks, which saw a huge slump in their share prices on Tuesday saw some recovery on value buying. HCL Tech and Infosys were among the gainers, though TCS continued to fall.