The stock market on Wednesday bobbed up and down like a see-saw but weakness in metal and auto stocks weighed down the benchmark indices, which surrendered a major part of Tuesday's gains.
After a choppy trade, the Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) ended with a drop of 249.63 points or 2.31 per cent at 10,573.15 from Tuesday's close of 10.822.78.
The National Stock Exchange's (NSE) S&P CNX Nifty also fell back by 83.80 points or 2.62 per cent to close at 3,115.55 against previous close of 3,199.35.
Investors seemed to have reduced their liabilities by making fresh liquidation rather than taking a risk of rolling over positions to new derivatives contract.
Attributing the volatility to approaching expiry of F&O contract on May 25, market players said brokers continued winding up at every rise, heavily unloading long positions during the last one hour.
The market, however, is expected to witness hectic short covering on the last day of futures contract, they added.
Heavy selling at the fag end indicated that the expected rollover has not taken place during the day.
{{/usCountry}}Heavy selling at the fag end indicated that the expected rollover has not taken place during the day.
{{/usCountry}}Foreign Institutional Investors (FIIs) were believed to be continued sellers in the Cash segment. They reported net sales of Rs 4,787 crore in six sessions from May 15.
FIIs, however, were heavy buyers to the tune of Rs 6,418 crore in the futures between May 16 and 23.
Weak trend in metal prices, which saw a strong rally on LME yesterday, also affected the market sentiments.