It was a sixth straight day of losses for the Nifty despite a recovery in banking stocks providing little help.
The Sensex ended the day with losses of 49 points, while the Nifty lost 12 points in trade. Leading the set of gainers from the Nifty were ICICI Bank, HDFC and Tata Motors. Shares in Sun Pharma rallied after the company got an approval for merger with Ranbaxy Laboratories.
JSW Energy gained ground after BNP Paribas started rating the stock with a buy.
Shares in IPCA lost heavy ground after an import alert was issued for one of the company's plants. Shares in Sun Pharma was among the top gainers in trade after the company's merger was approved with Ranbaxy.
Ranbaxy too gained ground in trade following the approval. Shares in Infosys ended the day flat despite reports that IT majors could drop prices to gain business. Wipro managed to end the day firm.
Shares in Bharti Infratel touched a new record high of Rs 399 in trade.
Meanwhile, markets across Asia ended the day with losses, following a poor set of cues from global markets.