The Sensex ended lower by 211 points, while the Nifty lost 48 points in trade. Among the stocks that gained from the Nifty were Jindal Steel, Tata Motors, Ambuja Cements, IDFC and HDFC.
Among the Nifty stocks that lost ground in trade were Infosys Technologies, ONGC, ITC, Ranbaxy Laboratories and Bharti Airtel.
TVS Motors Company dropped sharply by more then 12 per cent, after the company had a spectacular run on Monday jumping more then 8 per cent in trade after the wheeler major entered into a long term co-operation with BMW Motorrad to develop and produce new series of sub 500cc motorcycles.
Shares in Tata Consultancy jumped one per cent after the company said that that it has signed definitive agreements for the acquisition of 100 per cent equity shares in Alti SA, an IT services company in France
Wipro on the other hand lost ground after the company de-merged its IT business.
Real estate stocks which were trading in the green in early morning trades lost ground and ended the day with losses. DB Realty and DLF were the prominent losers from the space.
PSU banking stocks came in for some selling pressure with stocks from the space continuing to see selling pressure on worries over rising non performing assets. Stocks from the space that lost ground were Union Bank, Oriental Bank and IDBI Bank.
Meanwhile, most of Europe was trading with gains with the German DAX, the French CAC and the UK's FTSE up in trade.
Indian stocks are expected to trade cautious ahead of Infosys' results which kicks-off on April 12.