The Sensex erased early gains to end 156 points lower at 15,896 after selling pressure intensified in the latter half of the session. The index touched a high of 16,360 and a low of 15,805 during the day

Asian markets, however, ended mostly higher today.

On the NSE, the Nifty ended 38 points lower at 4,711.

“The markets would be more healthy and evened-out after this long due correction. This is the time to cover shorts and initiate long positions,” said Sanjeev Bhasin, an independent investment advisor.

Oil & gas and power stocks led the decline on the bourses today.

The oil & gas index on the BSE fell 2.8 per cent. RNRL plunged 6.1 per cent and Aban Offshore shed 4.5 per cent. Sensex heavyweight RIL ended 3.6 per cent lower at Rs 1,931.

The BSE power index dropped 1.5 per cent. Suzlon Energy was the biggest loser in this group. The stock fell 6.2 per cent. Reliance Infra also slid 5 per cent.

Auto and banking stocks ended with modest gains. In the auto space, Apollo Tyres rose 4.8 per cent and Ashok Leyland advanced 3.5 per cent.

Among the banking stocks, ICICI Bank gained 2.4 per cent to close at Rs 789. The bank today reported a net profit of Rs 1,040.13 crore during the September quarter, a 2.56 per cent increase over the year-ago period.

Among the Sensex stocks, RCom was the top loser. The stock fell 7.3 per cent to Rs 175. Bharti Airtel also shed 6.4 per cent to close at 292. The company today reported a drop in its average revenue per user, signalling an intensification of competition in the telecom sector.

Sterlite Ind, however, ended up 3.4 per cent at Rs 771.

Asian stock markets snapped three days of losses Friday after the U.S. economy broke out of a yearlong slump, spurring hopes of improved demand for the region's exports. European shares were mixed.

The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing U.S. housing market and weak consumer confidence.

Hong Kong's Hang Seng led Asia's advance, jumping 487.88 points, or 2.3 percent, to 21,752.87. Japan's Nikkei 225 stock average gained 143.64, or 1.5 percent, at 10,034.74 but South Korea's Kospi reversed course to fall 0.3 percent to 1,580.69. China's Shanghai Composite Index climbed 1.2 percent, Singapore's market was up 0.8 percent and Australia's benchmark gained 1.5 percent.

(With inputs from agencies)