The Sensex ended the day sharply lower as a slide in the last 30 minutes on heavy profit booking took its toll on the markets.
The Sensex ended the day with losses of 244 points, while the Nifty ended the day lower by 84 points. Axis Bank saw a sharp slide in the last 30 minutes losing as much as 3 per cent.
IT stocks were weak in trade ahead of results from TCS to be declared after market hours on Thursday. Infosys and Wipro also lost ground.
Consumer durable stocks also saw buying interest with Bajaj Electricals rallying 3 per cent. Torrent Pharma saw its shares gain 3 per cent after the company got tentative approval by US FDA for Rosuvastatin calcium.
Gujarat Gas on the other hand jumped after the company got permission for gas distribution in the city of Thane.
Real estate stocks which had seen some buying interest in trade in the last few trading sessions ended the day with losses.
Meanwhile, markets across Europe were trading with good gains, while most of Asia ended the day mixed. The German DAX, French CAC and the UK's FTSE were trading with gains.