Profit taking in heavyweight stocks like Reliance Industries and HDFC Bank dragged the benchmark indices lower in trade, with the Sensex closing lower by 416 points. In early trade, the Sensex had crossed the 42,500 points mark, which means it shed almost 700 points from the day's high.
Public sector shares were in action today with Indian Oil and Power Finance seeing sharp drops, after they after the NSE announced changes in the Nifty CPSC (Central Public Sector Enterprises) index and these stocks were excluded.
Among the few stocks that gained in trade was Gail, which according to reports has seen consistent buying by domestic mutual funds. The stock ended the day almost 1.3 per cent higher.
Oil and Gas exploration major, Oil India was another stock that saw a sharp fall and ended the day 4 per cent lower. Kotak Mahindra Bank shed 4.72 per cent in trade, after the company's rising gross non performing assets, saw investors sell into the stock.
Shares in Federal Bank gained 2 per cent, following good quarterly numbers. Meanwhile, most markets were having a quiet session in trade with the European markets down marginally, while most of Asia ended the day with gains. Indian markets expected to be volatile ahead of the Union Budget to be announced on Feb 1, 2020.