Benchmark indices lost heavy ground in trade, as investors continued to worry over a prolonged period of pain for the economy owing to elevated crude prices.

The Sensex ended the day lower by 642 points, while the Nifty lost 186 points in trade. Investors remained concerned that rising crude prices, could impact both the current account deficit and fiscal deficit. Global markets were relatively quiet, with the European indices trading flat.

Oil Marketing Companies lost heavy ground with HPCL and BPCL continuing to fall for a second day in a row on rising crude prices. Remember, these companies tend to lose ground each time crude prices move higher, as margins maybe impacted by the crude rise cannot be passed on.

Shares in Steel Authority of India (SAIL) jumped after the government gave permission to sell 70 tonnes of sub grade minerals in the captive mines of SAIL. The shares were up nearly 3 per cent in trade.

Auto stocks were rather weak in trade with Hero Motor Corp among the top losers from the Nifty. Maruti too lost ground ended lower by 4 per per cent. Axis Bank and Tech Mahindra were the other losers from the Nifty.

Shares in UFO Moviez fell after ICRA downgraded the long term outlook to negative from stable. Shares of MMTC and STC both fell between 16 to 18 per cent, after reports that the government may shut down these companies.

Meanwhile, the rupee fell to 71.88 against the US dollar.