The Bombay Stock Exchange benchmark Sensex on Wednesday fell by over 143 points with selling emerging amid a fall in overseas markets on concerns of the global economic recovery faltering.
The Sensex, which had gained 173 points in the previous session, plunged by 143.45 points to 17,471.03 on a steep decline in refinery and finance sector stocks.
In the 30-BSE components, 26 stocks declined while four ended with gains.
Heavyweight Reliance Industries fell by Rs 19.65 to Rs 1,052.95.
The wide-based National Stock Exchange index Nifty declined by 47.95 points to 5,241.10.
Trading sentiment turned weak following a fall in Asian stock markets and a lower opening in Europe this afternoon on fears that global growth may falter and the rising inflation may force the Reserve bank to hike interest rates.
Some investors were seen off-loading part of their holdings to book profits after the strong rally on Tuesday.
Bucking the general weak trend, stocks of retail companies, led by Pantaloon Retail India and Trent Ltd, continued their upward journey after the government pitched in for foreign direct investment in the sector.
Steady progress in monsoon rains raised hopes of a rise in agricultural yield, which could generate better buying power in consumer goods among rural populations.
This capped the losses and reduce further losses in the market.
Oil and gas sector index suffered the most, losing 1.70 per cent to settle at 10,489.76, followed by the metal sector, by 1.23 per cent to 14,414.97.
The banking index fell by 1 per cent to 10,474.15 as segment major ICICI Bank, the countrys second-biggest lender, dropped 1.47 per cent to Rs 846,15.