The Nifty closed the day lower by 35.85 points, while the Sensex ended the day lower by 113.79 points. Stocks that lost heavy ground in trade were Jaiprakash Associates, DLF, Hindalco, Hindustan Unilever, Kotak Mahindra, Amobuja Cements and HDFC.
Pharma stocks were the star performers in a falling market with Cipla, Dr Reddy's, Lupin and Glenmark all attracting buying interest.
Bharti Airtel dropped following a disappointing set of numbers, wherein profits fell sharply on the back of higher costs and forex losses.
PSU major Bhel also declined after its profits failed to meet expectations. PSU banking stocks which have been gaining after Union Bank of India and Punjab National Bank reported healthy numbers came in for some profit selling in trade today.
Stocks from the sector that lost ground were Oriental Bank of Commerce, Allahabad Bank, IOB, Canara Bank and Indian Overseas Bank.
Realty stocks ended the day mixed with DLF plunging more than 3 per cent, while HDIL and Indiabulls Real Estate saw buying interest.
Shares of Mahindra Satyam dropped after the company's results failed to meet market expectations. Shares of BPCL gained following reports that diesel prices would continue to be increased by Rs 0.50 per month.
Metal stocks came in for some severe selling pressure with Hindalco, Nalco, Sesa Goa and Sterlite all dropping in trade today. IT stocks like Infosys and Wirpo saw some selling pressure after the sudden weakness in the rupee.
Meanwhile, most of Asia ended the day with gains led by a surge in stock prices in China. In fact, the Shanghai Composite rallied more than 1.41 per cent in trade. Markets are expected to trade in a range and would now eagerly await the Union Budget to be delivered on Feb 28.