Both the benchmark indices broke psychological levels and dropped in trade. The Sensex fell below the 41,000 points and was last trading at 40,809 points, lower by 245 points, while the Nifty was down 74 points at 11,969 points. If the negative trend remains, it would be the fourth straight day of losses for the Nifty and the Sensex.
Leading the set of losers was Yes Bank, which dropped sharply for a second day in a row. The shares were trading at Rs 35.30, down almost 5 per cent in trade. Other losers were IndusInd Bank, Bharti Airtel, Vedanta and Tata Steel.
Shares in Dewan Housing Finance Corporation jumped as much as 4.5 percent after reports that lenders to the company have received expressions of interest from 24 bidders under the insolvency process. Shares in JSW Energy extended gains for the second consecutive trading session. The stock rose as much as 7 per cent.
LIC Housing Finance shares fell sharply, after a foreign brokerage had a sell call on the stock.
Zee Entertainment and GAIL were among the early gainers in trade. Meanwhile, Asian markets fell sharply in trade, as Apple warned on revenue impact due to the Coronavirus. This also led to some markets like the Japanese Nikkei falling sharply in trade.