Snapping a two-day rally, the BSE benchmark Sensex on Wednesday dropped by over 213 points as investors sold stocks to book profit after recent rally amid weak Asian cues.
The 30-share barometer fell by 213.49 points to settle at 16,284.98 points, with 28 Sensex scrips closing in the red. The index had gained 357 points in last two sessions.
The pull-down was mostly led by banking, auto, metal, capital goods and IT stocks. Selling pressure kept all sectoral indices in the negative zone.
Investors booked profits and cleared their pending positions ahead of monthly contract expiry in the derivatives segment Thursday, brokers said.
Asian markets dropped in line with Tokyo share index after Moody's downgraded Japanese sovereign debt and banks.
Fears of interest rate hike by the Reserve Bank to tame towering inflation further hit the market sentiment and pulled down banking and interest sensitive sector stocks.
The broad-based NSE index Nifty plunged by 60 points to 4,880.90.
Country's largest software exporter TCS fell by 1.71% to Rs 962.75 and Infosys by 1.06% to Rs 2,249.95. Wipro fell 1.05% to Rs 329.65.
Reliance Industries fell by 0.60% to Rs 760.95. The stock with Infosys carry nearly 21% weightage on the benchmark.