The 50-share NSE Nifty has touched an intraday low of 5051.65, before closing at 5,063.60 points, down 0.99 pc or 50.85 points.
The 30-share BSE Sensex slipped below 17,000 mark in last few minutes, before finishing the trade at 17,009.17, down 213.84 points or 1.24 pc.
The sell-off was seen in financial, FMCG, steel, auto, oil & gas, cement, pharma and select power companies' shares while buying in technology stocks and Bharti Airtel capped the losses to some extent.
On the global front, European markets were down 0.7-1.2 pc and US index futures fell over 0.5 pc, at the time of writing this report. Asian markets also ended 0.3-0.7 pc lower.
Sensex trading marginally lower; ONGC, SBI, dip
At 12:12 pm, the Sensex was trading marginally lower along with some volatility. Banking, FMCG, auto, cement, select telecom and steel stocks were under pressure.
The Sensex was down 23 points at 17,199 and the Nifty was down 7 points at 5,107. Among the broader indices, the BSE Midcap Index was flat while the Smallcap Index was up 1 pc.
In the largecaps, ONGC, SBI, HDFC, ICICI Bank, BHEL, Cairn, Tata Steel, Sterlite, Tata Motors and Idea Cellular went down 1-2.5 pc.
In the midcap space, Jet Airways, Tata Investment Corp, GNFC, Gujarat NRE Coke and Andrew Yule gained 4-7 pc.
Parsvnath, Mahindra Holiday, KGN Industries, Balrampur Chini and Bajaj Hindusthan fell 3-6 pc.
In the smallcap space, Ajmera Realty, Oil Country, Walchandnagar, Polaris and India Glycols went up 12-16.7 pc.
However, Vikas WSP, Garware Offshore, EIH Associated Hotel and Ahmednagar Forgings declined 3.5-5 pc.
Nifty consolidates; Bharti, Hero Honda gain
At 10:44 am, the Nifty was quiet in trade and was hovering around the 5,100 level. Technology, realty, aluminium and oil marketing companies' shares were helping the markets.
The Sensex was up 6 points at 17,229 while the Nifty fell just 3 points to 5,111. However, the broader indices were marginally in the green.
The market breadth was positive; about 1,614 shares advanced while 1,325 shares declined on the BSE. Nearly 818 shares were unchanged.
However, selling continued in banking, steel, FMCG, cement, select auto and power stocks.
Bharti Airtel, Hero Honda, M&M, Power Grid, Siemens, Ranbaxy and Cipla were the other gainers. BHEL, Cairn, Idea Cellular and Sun Pharma were the other losers.
Sensex open flat; Tata Motors, SBI, BHEL dip
The Sensex opened the day on a flat note in the early trade. The Nifty was hovering around the 5,100 level.
At 9:56 am, the Sensex was up just 6 points at 17,228 while the Nifty fell 3.5 points to 5,111. The CNX Midcap Index was flat.
Among the frontliners, Grasim, Cairn India, SBI, ICICI Bank, Tata Motors, Suzlon Energy, Idea Cellular, BHEL, SAIL, Sterlite Industries and ACC were the losers in the early trade.
However, HCL Tech, Hindalco, Hero Honda, Bharti, Infosys and HUL were supporting the indices.
Asian markets were trading lower. Hang Seng, Straits Times, Kospi and Taiwan Weighted fell 0.5 pc each. Nikkei and Shanghai declined 0.2 pc each. Jakarta fell 1.5 pc.