Sensex also closed lower due to selling in technology, pharma, telecom, banking & financial, auto and select cement companies' shares.
BSE Sensex shut shop at 17,590.17, down 121.18 points while NSE Nifty shed 40.40 points to end at 5262.45.
However, ICICI in banking space and Tata Motors in automobile arena were exceptions.
The gainers for the day were DLF, Sterlite, BHEL, Tata Motors, Cairn, ICICI Bank, SAIL, ONGC, HUL, PNB, Unitech, ACC and ABB.
Nifty slips below 5300 mark
At around 1 pm, Nifty was seeing volatility while the benchmark tried to stay on the positive side. It was holding on to the 5300 mark on the back of the buying interest in oil & gas, metal, realty, auto, FMCG and select banking stocks along with Bharti and BHEL.
At 2: 40 pm, NSE Nifty let go of the 5300 mark and slipped to 5280.25, shedding 22.60 points while BSE Sensex was at 17,644.56, down 66.79.
However, the gains were capped by the continuing buying in technology and select capital goods stocks. HDFC Bank, Sun Pharma, Axis Bank, HDFC, Idea Cellular, Cipla and Reliance Infrastructure also dipped.
The top gainers were DLF up 3.86 per cent; M&M up 2.41 per cent; Sterlite Industries up 2.03 per cent; Jaiprakash Associates up 1.66 per cent; ACC up 1.55 per cent; Cairn India up 2.19 per cent and Suzlon Energy up 1.93 per cent.
The broader indices were outperforming the benchmarks.
2: 45 PM
Nifty hovering around previous closing value
Nifty is hovering around its previous closing value while Sensex was just up 7 points. At 11: 21 am, BSE Sensex was trading at 17718, up 7 points while the Nifty was at 5301, down 0.9 points.
Technology and capital goods stocks were reeling under selling pressure. HDFC Bank, HDFC, Sun Pharma, ITC, Axis Bank, Grasim and Idea Cellular also dipped.
On the positive side, buying continued in commodity stocks like metal and oil & gas exploration on rise in commodities. Among the other gainers were realty, auto and select cement stocks along with SBI, ICICI Bank, Bharti Airtel, HUL and Ranbaxy Labs.
Among the midcaps, Asian Star, JM Financial, Shriram City, Andrew Yule and JSL gained 4.5 to 13 per cent. However, the losers were MVL, Sunteck Realty, Engineers India, Deccan Chronicle and Patni Computer, down 2.4 to 4.5 per cent.
12: 31 PM
Nifty opens positive; Unitech, RIL, ICICI up
After a taking on a rally to hit 52-week high, Nifty yet again opened the day on a strong note. Sensex also followed the suit.
At 9:02 am, BSE Sensex was trading at 17767, up 56 points and NSE Nifty was at 5318, up 15 points. The CNX Midcap gained 38 points and went up to 7705.
Buying was seen in metal, oil & gas exploration, auto, telecom, power, cement and realty stocks.
Unitech, Sterlite Industries, Cairn, Suzlon Energy, Ranbaxy Labs, Jaiprakash Associates, Hero Honda, Reliance Power, SAIL, Ambuja Cements, DLF, Reliance Industries, ONGC and ICICI Bank were the frontliners enoying buying interest.
HUL was trading on the negative side.
Among the midcaps and smallcaps, Pipavav Shipyard was up 2 per cent, Gujarat NRE Coke and NMDC went up 1 to 1.5 per cent, Suven Life and Glenmark Pharma rose 1 to 2 per cent, Jubilant Foodworks went up 2 per cent. However, Texmo Pipes slipped 2 per cent and Valecha Engineering plunged 4 per cent due to profit booking.