Global risk assets extended losses as sentiment was rattled by overnight market talk that a hedge fund had been liquidating large positions in commodities, as well as worries the Federal Reserve could slow its bond buying programme.
All groups of stocks traded lower, but high beta stocks such as metals and realty saw sharp downsides. Capital goods stocks also saw over 1 per cent cut.
45 stocks traded lower on the Nifty led by infra major Jaiprakash Associates that declined 3.6 per cent. Aluminium maker Hindalco, iron ore miner Sesa Goa and power equipment maker BHEL traded 1.5-2 per cent lower.
State-run oil retailer BPCL and drug makers Lupin and Cipla saw some buying interest.
Kingfisher Airlines shares were up by their daily limit of 5 per cent for the fourth straight day though other aviation stocks such as SpiceJet fell sharply after Malaysia based AirAsia said it plans to start India operations. (Read full story here)
(With inputs from Reuters)