Sensex sank 378 points in trade, reducing a significant portion of a 4-day rally, after banking stocks cracked once again in trade.
In fact, State Bank of India and ICICI Bank dropped a huge 3 per cent each in fresh round of selling, which dragged the Sensex lower by 378 points, while the Nifty fell 125 points in trade.
Vedanta, Punjab National Bank and Cairn India dropped after these companies would be excluded from the Nifty with effect from April 1, 106.
Coal India and Bajaj Auto were the other stocks that saw deep cuts. Infosys was the only stock from the Sensex that managed to show some resilience in trade.
Shares in NTPC lost ground by 2 per cent. The government managed to successfully complete the offer for sale to raise resources.
HDFC fell to its lowest level since Oct 2014, as foreign funds continued to trim exposure to the stock. Midcap stocks also dropped sharply in trade with Jubilant Foodworks and Reliance Capital dropping 3 per cent each.
Meanwhile, markets across Asia ended the mixed with the Shanghai Composite recovering some lost ground after slumping more than 2 per cent in trade. The Singapore Strait Times and the Taiwan Weighted ended the day higher.