Brokers said selling pressure gathered monentum as speculators forced to clear their long pending positions created in the recent rally following monthly expiry of derivatives segment.
They said some investors booked profits from current upsurge when the benchmark hovered at two-year high.
Besides, a weak trend in the Asian region and lower opening in Europe further influenced the market sentiment, they added.
The market heavy weight Reliance Industries fell by 1.39 per cent to Rs. 886.55 and Infosys lost by 0.13 per cent to Rs. 2,788.75.
The second biggest private lender ICICI Bank declined by 1.93 per cent to Rs. 1,190.85 despite reporting over 30 per cent rise in its standalone net profit at Rs. 2,250 crore in the third quarter ended December 2012.
In 30-BSE index components, 19 stocks declined while 11 closed with gains. The banking sector suffered the most by losing 0.42 per cent to 14,580.26, after investors created long positions before the RBI credit policy. PTI RS SUN KPS DP