The S&P BSE Sensex and NSE Nifty 50 indexes extended losses in afternoon trading as index heavyweights Reliance Industries, HDFC Bank, Tata Consultancy Services, Infosys, HDFC and HCL Technologies came under heavy selling pressure. The Sensex fell as much as 503 points and Nifty 50 index dropped below its important psychological level of 11,200. Weakness in Reliance Industries, HDFC Bank, Tata Consultancy Services, Infosys, HDFC and HCL Technologies wiped off over 400 points from the Sensex.
As of 2:44 pm, the Sensex was down 501 points or 1.3 per cent at 37,992 and Nifty 50 index fell 118 points to 11,182.
Eight of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Auto index's 1.6 per cent decline. Financial Services, energy, IT and banking shares were also facing selling pressure.
On the other hand, PSU Bank shares were witnessing buying interest ahead of Prime Minister Narendra Modi's meeting with the heads of PSU banks.
Mid- and small-cap shares were outperforming their larger peers as Nifty Midcap 100 index rose 0.45 per cent and Nifty Smallcap 100 index was trading on a flat note.
Reliance Industries was top Nifty loser, the stock dropped 4 per cent to Rs 2,092 a day ahead of its June quarter earnings.
Maruti Suzuki dropped 3 per cent to Rs 694 after it posted a quarterly loss for the first time in at least 15 years on Wednesday, as the country's largest automaker's production and sales were hit due to coronavirus lockdowns and supply chain disruptions.
Nestle India, Mahindra & Mahindra, HDFC Bank, TCS, Bharat Petroleum, Adani Ports, Tech Mahindra HDFC, Asian Paints, Adani Ports and Shree Cement were also among the losers.
On the flipside, Dr Reddy's Labs was top Nifty gainer, the stock rose 7 per cent after it reported better-than-expected profit of Rs 579 crore in June quarter.
IndusInd Bank climbed 5 per cent a day after its net interest income rose 16.36 per cent in the quarter ended June 30.
Tata Steel, Grasim Industries, Bharti Infratel, Cipla and Sun Pharma were also among the gainers.