Stocks closely associated with the Railways including stocks like Texmaco Rail, Kalindee Rail and Titagarh Wagons lost heavy ground in trade.
PSU stocks were hammered mercilessly in trade with BHEL falling a huge 7 per cent, while other stocks that declined were Coal India, NMDC, ONGC and NTPC. Larsen and Toubro also fell heavily in trade.
A few Nifty stocks that managed to hold ground were from the private sector banking space including the likes of IndusInd Bank and Kotak Bank. However, PSU Banking stocks came in for severe bear hammering with notable losers being Syndicate Bank, Union Bank, Indian Overseas Bank and Allahabad Bank.
Select stocks like Shrenuj and Company rose after the RBI relaxed norms governing import of rough, cut and polished diamonds by doubling the credit time period to 180 days.
Shares in Shasun Pharma rallied after the company announced the completion of US FDA inspection at TN unit.
Shares in mid cap stocks were pounded with IFCI falling 7 per cent, CESC dropping 6 per cent and Unitech falling almost 9 per cent.
Meanwhile, markets across Europe were trading marginally lower, following weak overseas closing across the US markets on Monday.