Benchmark indices opened the day sharply lower on heavy selling in frontline stocks, following humiliation of the NDA in the Bihar elections.
Worries are that the government may not be able to push the reform process, left investors worried and heavy selling by Foreign Portfolio Investors, pushed the benchmark indices lower.
Sun Pharma was the top loser from the Nifty falling a huge 6 per cent after its results disappointed the street.
Dr Reddy's which had received a warning from the US FDA for three if its plants continued to fall. The stock was down 3 per cent today, after a fall of almost 14 per cent on Friday. Private sector banks saw huge cuts with ICICI Bank and Axis Bank among the gainers.
Not a single stock from the Nifty was trading in the green, though stocks from the IT sector remained resilient to the fall. HCL Tech was marginally lower, while Infosys saw a cut of just one per cent.
Hathway Cables saw huge losses in trade after its losses widened. Midcap stocks also saw severe selling pressure with stocks like JSW, Unitech and India Cements losing heavy ground.
Metal stocks like Tata Steel, Hindalco and Vedanta were the worst hit in trade.
Meanwhile, markets across Asia were trading in the positive led by gains in Shanghai composite and the Japanese Nikkei.