The BSE benchmark index Sensex on Tuesday fell further by 144 points as investors booked profits at high levels after inflation soared to a three-month high for March dashing hopes of any rate cut by the Reserve Bank.
The 30-share barometer fell by 144.03 points, or 0.64% to close at 22,484.93. It shuttled between a high of 22,737.31 points and 22,416.24 points during the day. The index had lost 86 points in the previous session.
The market started the day on a high note after IT major Infosys posted attractive results for the last quarter of FY14. But later the markets tumbled after reports that inflation increased to 5.7% in March from 4.68% in February.
Brokers said selling pressure centred around financial and interest-sensitive stocks on fears RBI may keep interest rates high due to rise in inflation.
They said a weak industrial production data and reports of a lower trend in global markets on slowing China's economic growth further influenced the sentiment.
The broad-based National Stock Exchange index Nifty lost 43.20 points, or 0.64% to 6,733.10 after touching a high of 6,813.40.
In 30-BSE index components, 20 stocks declined led by State Bank of India, ICICI Bank, HDFC Bank, Axis Bank and Reliance Industries.
Maruti Suzuki, Mahindra and Mahindra, BHEL, Hindalco Ind. and ITC also declined.
Meanwhile, IT shares led by TCS, rose up to 4%, cushioning the market from further fall.
Wipro shares jumped 3.71% while Infosys gained up to 1%. Infosys reported 25% increase in net profit for the quarter ended March 31, 2014.
United Spirits jumped 11.58% to Rs 2,853.15 after liquor major Diageo made an open offer to acquire an additional 26% stake in the company.