The broader indices, BSE Midcap Index declined 1.4 per cent and Smallcap ended 1.6 per cent lower.
Metal, power, realty, telecom, cement and select auto stocks along with heavyweights Reliance Industries, SBI, ICICI Bank and TCS suffered sell off.
Fed's Thursday, Feb 18 move forced the Asian markets also to trade a negative zone, in turn affected the Indian markets.
Mkts continue southbound; DLF, Idea lose
Asian markets haunted by the Fed's unexpected move as well as the persistent selling across the sectors are forcing the Indian markets to a southbound journey.
At 2: 10 pm, BSE Sensex was at 16,166.15, down 161.69 points while NSE Nifty lost 54.75 points to trade at 4833.00.
Declining by 3 to 4 per cent, Jaiprakash Associates, DLF, Sterlite Industries, Tata Steel, Hindalco, SAIL and Idea Cellular were the top losers.
Among the midcaps, HCC, Indiabulls Real, GVK Power, Shree Renuka and Info Edge lost 4 to 5 per cent, while Sakthi Sugars, Garware Offshore, Escorts, Thinksoft and Reliance World declined 5 to 6 per cent in the smallcap arena.
However, Coromandel International gained 4.88%. Essar Shipping, Pidilite Industries, EID Parry and Shriram City were midcap gainers while OCL Iron, Centrum Finance, Zuari Inds, Maharashtra Polybutenes and Money Matters gained among the small caps.
2: 18 PM
Benchmarks reel under selling; Sensex tanks 173 pts
Indian benchmarks continue to reel under the selling across sectors. At 11: 46 am, the BSE Sensex was trading at 16154, down 173 points and NSE Nifty was at 4830, down 57 points. The broader indices also following the suit and lost over 1 per cent each.
Realty, metal, banking and infrastructure indices slipped 1 to 3 per cent.
The largecap losers were Jaiprakash Associates, DLF, Sterlite Industries, SAIL and Idea Cellular down 3.3 to 4 per cent while Tata Steel and SBI lost 2 to 2.5 per cent.
ONGC, ITC, HCL Tech, Maruti and GAIL were the only gainers.
Among the midcaps, Coromandel International, Essar Shipping, EID Parry, Castrol and MTNL gained while Indiabulls Real, HCC, GVK Power, KGN Industries and Central Bank lost.
In the smallcap arena, Money Matters, Graviss Hosp, OCL Iron, Centrum Finance and Nahar Industrial gained while Garware Offshore, Thinksoft, Reliance World, JK Cement and Hindustan Organic Chemical declined.
12: 15 PM
Mkts open weak; Tata Steel, DLF, HDFC lose
Nifty started the day on negative note on selling across the sector and weak Asian cues.
Indian and Asian markets were affected by the Federal Reserve's unexpected move raising discount rate by 25 bps to 75 bps post markets.
At 9:02 am, NSE Nifty was trading at 4846, down 41 points and BSE Sensex was at 16211, down 116 points. The CNX Midcap declined 43 points to 7263.
Sterlite, Hindalco, Tata Steel, SAIL, Unitech, Jaiprakash Associates, HDFC Bank, DLF, NTPC, SBI and L&T were the frontliners under selling pressure, while HUL, ITC, Sun Pharma, Ranbaxy Labs and Bharti Airtel were the early gainers.
In midcap and smallcap space, As fertiliser stocks continued rally on cabinet approved nutrient-based fertiliser subsidy plan, Chambal Fertiliser, Mangalore Chemical, FACT, GSFC, Nagarjuna Fertiliser and Oswal Chemcial were up 2 to 5 per cent.
Other gainers were Tanla Solutions up 5 per cent, and Fame India up 5 per cent, while Yes Bank, HDIL and Indiabulls Real Estate lost over 2 per cent.
9: 51 AM