The Sensex and the Nifty fell sharply in trade led by losses in Banks and capital goods stocks. Shares in Larsen and Toubro managed to recover some ground after falling sharply in the previous trading session.
On the other hand stocks that lost ground were HDFC, Sun Pharma, Tata Motors and Coal India.
Other stocks that lost ground were Sun Pharma which had a good rally on Wednesday. Deccan Gold Mines continued to rally another six per cent after the RBI says that FIIs can invest up to 24 percent in the company.
Mid cap stocks also lost ground in trade with stocks like Jubilant Foodworks, Bharat Forge and Voltas among the losers.
Shares in BPCL continued to trade higher despite a sharp increase in crude prices.
Meanwhile, markets across Asia were trading marginally lower, taking poor cues from the US.