The S&P CNX Nifty ended the day lower by 36 points, while the Sensex fell 126 points. Among the major losers from the index stocks was heavyweight ITC, which fell almost 4%, after reports that the company has been down weighted as part of a regular FTSE quarterly review.
Other stocks that were the top losers from the Nifty included IDFC, Sesa Goa, IDFC, Reliance Infra, ACC and Ambuja Cements.
Banking stocks which were trading significantly higher for most parts of the day, saw sudden selling pressure after European markets opened lower.
Banking stocks that dropped included Canara Bank, IDBI Bank, Federal Bank, Bank of India, Kotak Mahindra and Yes Bank.
Metal and mining stocks too came in for some heavy selling pressure with Sesa Goa, Sterlite Industries, JSW Steel, Hindalco and Tata Steel declining sharply.
Index stocks that gained in trade today were Tata Motors, Bharti Airtel, Jindal Steel and Bajaj Auto. Kingfisher Airlines was locked at the upper end of the circuit filter for the third day in a row after reports of buying interest from Etihad first surfaced.
Mining major, NMDC rose after the government managed to successfully sell shares in the company and also on upgrades of performance at the company.
Meanwhile, markets in Europe were trading lower ahead of a decision for aid to Greece.