The Sensex ended the day lower by 244 points, while the Nifty dipped 63 points. Leading the set of losers from the Nifty were heavyweights including the likes of ITC, Reliance Industries and Oil and Natural Gas Corporation.
Only a select few stocks from the Sensex gained ground including the likes of Hero Motor Corp, Cipla and Dr Reddy's Labs.
PSU banking stocks had a very strong session in trade with IDBI Bank, Allahabad Bank, Syndicate Bank and Andhra Bank seeing good rallies.
Bhushan Steel which had been gaining ground for the last few days managed to close at the lower end of the circuit filter.
Select mid cap stocks managed to hold ground with Unitech and Union Bank of India being among these.
Metal stocks were the worst hit in trade as Chinese growth stuttered. Jindal Steel lost as much as 4 per cent, while Hindalco, Sesa Sterlite and Tata Steel were also among the losers.
Fortis Healthcare rallied more than 6 per cent on reports that the company is to sell RadLink-Asia stake to Medi-Rad Association for about USD 110 million.
Meanwhile, markets in Europe were trading marginally lower, while most of Asia saw gains. Global markets are awaiting the outcome of the US Fed meet which might throw some light on where interest rates in the US are headed.