Selling in banking, oil & gas exploration, capital goods, technology, power, select auto, metal and pharma stocks led the index to end at 120 points down.
However, the losses were limited to a major extent by buying in HDFC Bank, Bharti Airtel, Sterlite, BPCL, Hindalo, Unitech, Hero Honda, Grasim and Jaiprakash Associates.
BSE Sensex ended at 15,922.17, down 120.01 points or 0.75pc and the 50-share NSE Nifty lost 0.74pc or 35.45 points to settle at 4,757.20.
Asian Markets closed at positive close when the Indian markets closed. Shanghai and Taiwan gained 1.1pc each. Hang Seng was up 0.67pc and Nikkei up 0.3pc. However, Straits Times was down 0.39pc and Kospi was flat.
Nifty trading flat around 4800
After erasing its early gains, Nifty was trading flat at 4800 mark. Realty and metal stocks witnessed buying interests. However, selling in banks, FMCG and capital goods stocks kept them under pressure.
At 12.35 pm, Sensex was trading at 16077.52, up 34 points and Nifty was up 11.30 points or 0.24pc at 4803.95.
In the largecaps, the top gainer was Hindalco with 3.5pc gain. Jaiprakash Associates, Unitech, DLF and Reliance Infra moved up 1.6 to 3pc. However, Cipla, Sun Pharma, HUL, Tata Power and SAIL tanked 1 to 2pc.
Top gainers in BSE Midcap were GlaxoSmith Consumer, Emami, Essar Shipping, DeccanChronicle and Motherson Sumi with a rise of 4 to 9pc.
Top losers in BSE Midcap were Monsanto India, Patni Computer, HSBC Invest, Novartis India and Aventis Pharma with a slip of 1 to 5pc.
Top gainers in BSE Smallcap include Goodyear, Cranes Software, KRBL, Esab India and Uttam Galva up 11 to 20pc.
Top losers in BSE Smallcap were Vindhya Telelin, Hinduja Foundri, Richa Ind, Kanani Industries and Simplex Project were down 4 to 6pc.
Sensex loses early gains; tech, power dip
Selling in banking, oil & gas exploration, technology, capital goods, power, FMCG and select pharma stocks led Sensex to forego its early gains.
However, the losses were capped to a major extent by buying in metal and realty stocks, including that of BPCL, GAIL and Jaiprakash Associates.
At 9:53 am Sensex was up 62 points at 15980 and Nifty was trading at 4776, up 16 points.
The top losers in largecaps were Sun Pharma, Tata Power, HUL, ONGC, BHEL and Cipla down 1 to 1.5pc.
Meanwhile, the most active shares on the bourses were Hindustan Copper, Jubilant Foodworks, STC India, NMDC, Tata Steel, Reliance Industries and ICICI Bank.
In the midcap space, Essar Shipping, Gujarat NRE Coke, Madras Cements, Andrew Yule and Emami shot up 3 to 4.5pc, while Monsanto India, Patni Computer, Shree Renuka, MRF and Novartis India lost 1 to 4pc.
In the smallcap space, Goodyear was locked at 20pc upper circuit for second consecutive on delisting buzz. Gulf Oil Corp, Elpro Int, Esab India and Take Solutions went up 6 to 9.9pc. However, Vindhya Telelink, Subhkam Capital and Ciba India lost 4.5 to 6pc.
In the Global Cues:
Asian markets were trading in mixed. Nikkei, Shanghai and Taiwan were up 0.6 to 0.9pc, while Straits Times dipped 0.4pc and Kospi lost 0.14pc. Hang Seng was flat.
Nifty opens above 4800 mark; tech, steel up
Benchmark Nifty opened above 4800 mark run on the back of positive global cues. The markets were trading amidst volatility. while Sensex too continued to trade above the psychological mark of 1600 marks.
At 9:02 am, Sensex was trading at at 16114, up 72 points and Nifty was trading at 4815, up 23 points.
Among the frontliners, the gainers at the opening session were Jindal Steel, Suzlon, SAIL, Tata Steel, Sterlite, Hindalco, Tata Motors, Jaiprakash Associates, Siemens, L&T, TCS, Infosys, ICICI Bank and HDFC.
On the other hand, Bharti Airtel, ITC and NTPC were the losers.
Midcap & Smallcap space:
Fame India gained 5pc and Inox Leisure was up 6pc. Reliance Mediaworks rose 1%.
Vishal Retail moved up 4.5pc on low volumes.
Prism Cement and Gujarat Sidhee rallied 3 to 5pc. India Cement rose 0.5pc.
Gujarat Gas and Gujarat NRE Coke moved up over 3pc.
NMDC, HMT and STC rose 1 to 3pc.
However, Infinite Computer and Jubilant Foodworks (both recently listed) tanked 0.6 to 1pc.
Asian markets were trading in mixed. Nikkei, Shanghai and Taiwan Weighted rose 0.6 to 1.4pc. However, Straits Times was down 0.5pc and Hang Seng lost 0.17pc. Kospi and Jakarta were flat.
The US markets gained prior to the German FM to initiate steps to support the Greek government.