The Sensex ended the day lower by 317 points (provisional), while the Nifty dropped 65 points in trade. Poor Infosys guidance and results had a sentimental effect on other IT stocks like TCS, HCL Tech and Wipro all of which shed gains.
Among the other Nifty stocks that lost ground in trade were Mahindra and Mahindra, Larsen and Toubro, Coal India, Ranbaxy Laboratories and Tata Motors.
Investors took shelter in defensives like pharma and FMCG, which saw the shares of ITC and Hindustan Unilever jump in trade. In fact, ITC was the top gainer from the Nifty stocks in trade. Other Nifty stocks that gained were Asian Paints, Hindalco Industries, Lupin Labs, BPCL and Ambuja Cements.
Banking stocks like FMCG stocks also saw buying interest after a lower then expected CPI number and on better then expected IIP data. Stocks from the sector that gained were State Bank of India, Punjab National Bank, Canara Bank, Yes bank and Bank of India.
Auto stocks, however, continued to trade weaker with prominent losers from the space being Maruti, TVS Motors and Mahindra and Mahindra.
The BSE Realty index saw some selling pressure with stocks like Parsvnath and Prestige dropping by more then 4 per cent in trade. Other stocks that dropped from the realty space were Anant Raj and Sobha Developers.
Meanwhile, most of the markets in Asia ended the lower with the Korean Kospi dropping more then 1 per cent in trade.
European markets were trading lower reversing the previous session's gains, as investors waited the results of a two-day meeting of Europe's finance ministers in Ireland.
Markets are expected to remain choppy going forward as earnings expectations are likely to be muted.