The BSE Sensex fell for a fifth straight session on Tuesday, while the broader Nifty closed below the 5,500 mark for the first time since September 2012.
Foreign funds, which sold stocks for the fourth consecutive session on Monday, have been the trigger behind the recent selloff. FIIs have pumped in $10 billion in 2013 so the sudden selloff has worried domestic traders. Uncertain political environment and continued weakness in the economy continue to weigh on sentiments.
The Sensex shed 211 points or 1.15 per cent at 18,226, while the Nifty declined 48 points to 5,495. The rupee traded lower at 54.58 to the dollar.
IT stocks underperformed the broader markets, with Infosys leading the decline. Infosys, which is due to report earnings on Friday, fell 2.3 per cent.