Mumbai: The Sensex tumbled 124 points on Wednesday and the Nifty slipped below the 9,500-mark with no let-up in selling by investors ahead of June derivatives expiry and weak global cues.
Banks' NPA thorn and uncertainties surrounding GST pushed the market even lower. Weakness in the rupee and muted global pointers did not help things either.
June derivatives contracts are set to expire tomorrow, which also held back investors.
"Banks NPA woes and expectation of higher cost on consumer durables post-GST rollout have kept the market in the red. Additionally, the expiry of derivative contract tomorrow and weak global cue adds volatility in the market," Vinod Nair, Head of Research, Geojit Financial Services Ltd said.
Falling for the third straight session, the 30-share Sensex ended lower by 123.93 points, or 0.40 per cent, at 30,834.32 after shuttling between 31,000.48 and 30,798.70.
The barometer had lost 332.49 points in the previous two sessions on lacklustre global cues and jitters ahead of GST rollout.
The 50-share NSE Nifty settled 20.15 points down, or 0.21 per cent, to end at 9,491.25. During the session, it moved between 9,522.50 and 9,474.35.
Anupam Singhi, COO of William O'Neil India said, "The market sentiment was subdued due to lacklustre performance across the Asian markets, and the lack of any major domestic cues. The indices began to slide, once the European markets opened in the red."
The laggards were Reliance Industries, Asian Paint, HDFC Ltd, ONGC, ITC Ltd, M&M, Adani Ports, Hind Unilever, Hero MotoCorp and Infosys as participants indulged in trimming their positions and fell in the range of 0.21 to 2.60 per cent.
However, stocks of Tata Steel, Bharti Airtel, Wipro, PowerGrid, ICICI Bank, NTPC, Maruti Suzuki, Cipla, Coal India and Sun Pharma and TCS were back in better shape on fresh buying and cushioned the fall.
Banking stocks continued to remain under selling pressure for the second straight session today amid reports of the RBI's mandate which required them to go for higher provisioning for those stressed loans marked for insolvency courts.
Shares of SBI, Axis Bank, Kotak Bank, HDFC Bank, Punjab National Bank, Syndicate bank, Andhra Bank, Bank of Baroda, Allahabad Bank, Union Bank of India and Bank of Maharashtra, fell by up to 1.07 per cent.
Sector-wise, the BSE consumer durables index bled the most, down 1.22 per cent, followed by oil&gas (0.79 per cent), FMCG (0.67 per cent) and capital goods (0.25 per cent).
Metal, realty, power, teck, IT, bank and healthcare indices ended in positive zone, rising by up to 1.62 per cent.
Broader markets outperformed the benchmark as investors widened their bets, with the mid-cap index rising 0.23 per cent and small-cap index 0.13 per cent.
Foreign portfolio investors net bought shares worth Rs 292.11 crore, while domestic institutional inverstors (DIIs) sold shares worth a net Rs 148.54 crore yesterday, provisional data from stock exchanges showed.
Concerns over stretched values of several blue chip stocks following recent record-setting rally too accelerated selling activity, brokers said.
The market breadth remained negative as 1,881 stocks ended in red, 711 finished in green while 180 ruled steady.
Overseas, other Asian markets turned negative as Republicans' struggle to push through controversial health care legislation sparked concerns about the chances of Donald Trump passing his much-vaunted economic agenda.
Key indices in the Asian region such as Hong Kong's Hang Seng fell 0.61 per cent, Japan's Nikkei shed 0.47 per cent, China's Shanghai Composite Index slipped 0.56 per cent. Stock market in Taiwan fell 1.16 per cent while Singapore shed 0.12 per cent.
European markets in Frankfurt, Paris and London were trading lower in their early deals.