The Bombay Stock Exchange benchmark Sensex on Tuesday dropped 159 points on selling in blue-chips amid mounting opposition to FDI in retail and a weak trend in the European markets as euro zone debt crisis persisted.
The Sensex, which had gained 471 points yesterday, fell 158.79 points or 0.98 % to 16,008.34 following fresh sell-off in realty, banking and refinery stocks.
Brokers said investors turned cautious as political deadlock continued over the government's move to open multi-brand retail to 51 % foreign direct investment.
They said the sentiment dampened on weak trend in the European markets, where investors remain worried over the debt crisis in the euro zone nations.
The broad-based National Stock Exchange index Nifty lost 46.20 points, or 0.95 % to 4,805.10.
Sensex heavyweights - Reliance Industries, Infosys, Bharti Airtel and State Bank of India - dropped. RIL was down 2.30 %, while Infosys fell 1.41 %. The two carry 20 % weight in the Sensex.
In the broader market, retail stocks led by Pantaloons, Vishal, Shoppers Stop and Trent showed considerable declines. Pantaloons suffered the most, losing 11.89 %.
The realty sector suffered the most, losing 2.32 % to 1,585.65, followed by banking index by 1.91 % to 9,911.10. Oil and gas index lost 1.84 % to 8,022.19 and consumer durables index by 1.39 % to 5,761.57.