The Sensex and the Nifty fell sharply in trade as earnings from ICICI Bank disappointed, even as Maruti bucked the trend and reported a better than expected results.
ICICI Bank fell sharply by 3 per cent as its results failed to match expectations. Andhra Bank, however, rallied after a good set of results.
Shares in State Bank of India slid 3 per cent, while Bharat Heavy, Dr Reddy's, HDFC, Hindustan Unilever, ONGC, Sun Pharma and Bharti were the other losers in trade.
DLF and Bharat Petroleum were the biggest losers from the Nifty stocks. Mid cap stocks also saw heavy selling pressure led by stocks like Apollo Hospitals, United Breweries, BOSCH, Mahindra and Mahindra and Shriram transport Finance.
Shares in Talwalkars were down 3 per cent ahead of sale of unit. Shares in HDFC fell despite reports that foreign funds had invested a record 80 per cent in the company.
Meanwhile, European markets were lower even as Asian markets hit a new record high. Indian markets have now fallen despite a sharp increase in markets across the globe, as worries over MAT for FIIs and attractive valuation elsewhere push FIIs to sell.