The Sensex and the Nifty dropped in trade as the Reserve Bank of India (RBI) held interest rates steady even while not providing any definite guidance on interest rate cuts going ahead.
The Sensex ended the day with losses of 122 points, while the Nifty closed the day with losses of 40 points. Leading the set of losers from the Nifty and the Sensex were banking stocks which came in for some selling pressure.
Stocks that gained ground in trade were Reliance Industries which rallied for a second day in a row along with Reliance Industries, Tata Motors, ONGC, TCS and ITC.
Mid cap stocks also came under intense selling pressure with stocks like Voltas, Unitech and UPL among the losers.
Meanwhile, markets across Europe were trading higher after reports that Greece would return to the table for negotiations. Most Asian markets ended the day mixed with the Shanghai Composite gaining a huge 2.3 per cent in trade.