The BSE Sensex fell over 160 points in the early hours of trade today as investors offloaded positions ahead of March F and O expiry and the end of financial year.
The 30 share index shed 164.52 points to 33,009.87. Earlier the index had gained over 500 points in its previous two sessions.
Sectoral indices led by PSU, power, metals and banking stocks, traded in red falling by over 1 percent.
A sharp fall on Wall Street driven by tech stocks yesterday and then a weak trend in Asian markets today also weighed on market sentiments here.
The broader 50 shares index Nifty on the National Stock Exchange lost 59.40 points to trade at 10124.75.
Major laggards were Tata Steel, SBI, ICICI Bank, HDFC Bank, Asian Paints, Adani Ports, NTPC, Yes Bank, Coal India, Power Grid, RIL, ONGC, and Infosys lost more than 2 percent.
The brokers said that Investors are cutting bets on the last trading session of March F&O expiry and the end of the financial year 2017-18.
Indian markets will remain closed on Thursday and Friday for the festivals Mahavir Jayanti and Good Friday, respectively.
Meanwhile, on a net basis, Domestic Institutional Investors (DIIs) made purchases to the tune of Rs 2172.91 crore while Foreign Portfolio Investors (FPIs) bought shares worth Rs 1063.12 on Tuesday, provisional data showed.
In other Asian markets, Japan’s Nikkei shed 1.77 percent, while Hong Kong’s Hang Seng was down by 1.29 percent in early trade today. The Shanghai Composite index too fell by 0.76 percent.
The Industrial Average of US Dow Jones ended 1.43 percent lower on Tuesday.