Benchmark indices ended the day sharply lower, despite a positive trend from Europe and despite a recovery in the Dow Futures.
Reports of tense situation along the border with China and build-up of Chinese tanks and infantry forces in the South Pangong region of Eastern Ladakh impacted sentiments. Bulls were unwilling to carry forward long positions ahead of the weekend, given the border situation.
The Sensex ended the day lower by 633 points at 38,357 points, while the Nifty closed lower by 194 points. JSW Steel, Tata Steel, Adani Ports and NTPC were among the major losers from the Nifty. On the other hand stocks that gained was Maruti Suzuki.
Among the top gainers from the small cap index was Granules India, whose stock hit an all time high of Rs 350 in intra-day trade and ended below the same.
The metals pack was the weakest in trade, followed by the banking pack. The Nifty Bank and the Nifty Metals were the biggest sectoral losers in trade.
Among the banking names Axis Bank, State Bank of India and ICICI Bank saw the biggest losses in trade.
Meanwhile, most of the European markets were trading with gains, even as the Dow Futures pointed to higher openings for the US markets.