The solid rally witnessed on Monday, which raised hopes of markets moving ahead during the course of the week were belied as heavy selling pressure saw indices ending lower.
The Sensex ended the day with losses of 362 points, while the Nifty dropped 114 points in trade. Today's losses on the benchmark indices was surprising given the fact that Asian markets rallied following stability in oil prices, strong Chinese markets and good retail numbers from the US.
PSU Banking stocks saw some deep cuts with State Bank of India dropping almost 6 per cent, while other notable losers were Punjab National Bank, Canara Bank and Bank of Baroda, which dropped 5 per cent each.
Adani Ports was the biggest gainer from the Nifty jumping 4 per cent on value buying. BPCL was the biggest loser dropping a near 5 per cent.
Idea Cellular was also down and lost close to 4 per cent. Oil exploration companies saw their stock prices rallying, following hopes that there would be production cuts, after the commencement of meeting of oil producers. ONGC and Oil India were resilient in a falling market.
L&T which had a spectacular run on Monday also lost ground in trade. Meanwhile, markets across Asia ended the day with solid gains, while most of Europe was trading higher.