The S&P BSE Sensex and NSE Nifty 50 indexes fell for second straight session dragged by weakness in banking, financial services and FMCG shares. However, losses were caped on the back of strong gains in pharma shares. For most part of the day, benchmarks traded in a range bound manner with a positive bias. However, intense selling pressure in banking shares in the last hour of trade led to weakness in the benchmark indexes. The Sensex fell as much as 344 points at the day's lowest level and Nifty 50 index briefly dropped below 11,500.
The Sensex ended 134 points or 0.34 per cent lower at 38,846 and Nifty 50 index declined 11 points or 0.10 per cent to settle at 11,505.
Seven of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank index's over 1.5 per cent decline.
Nifty Bank, Private Bank, Financial Services and FMCG indexes also fell between 0.6-1.3 per cent.
On the other hand, pharma shares witnessed good buying interest. The Nifty Pharma index was top sectoral gainer, up 5 per cent.
Mid- and small-cap shares ended on a subdued note as Nifty Midcap 100 index closed on a flat note while Nifty Smallcap 100 index fell 0.44 per cent.
HDFC Bank was top Nifty loser, the stock fell 2.3 per cent to close at Rs 1,058. Shree Cements, Bajaj Finserv, Kotak Mahindra Bank, Maruti Suzuki, Titan, Hindustan Unilever, State Bank of India, Indian Oil, Coal India. Larsen & Toubro and Infosys also fell between 0.73-2 per cent.
Dr Reddy's Labs was top Nifty gainer, the stock rose 10 per cent to close at record high of Rs 5,306 after the company announced settlement of litigation with Celgene, a wholly-owned subsidiary of Bristol Myers Squibb, relating to patents of Revlimid capsules.
Cipla, Adani Ports, Bharti Airtel, Mahindra & Mahindra, Grasim Industries, Tech Mahindra, NTPC, Sun Pharma and Hindalco were also among the gainers.
The overall market breadth was neutral as 1,309 shares ended higher while 1,428 closed lower on the BSE.