Key benchmark indices wiped out some of previous day’s gains on Wednesday as crude oil prices rose and the rupee fell against the dollar after a flare up of militant violence in Iraq, a key oil exporter.
Both the premium indices of BSE and NSE fell over one percent each after the tension in Iraq escalated further but the Nifty managed to hold 7500 level.
The market breadth indicating the overall health of the market was negative.
The popular BSE Sensex fell 274.94 points or 1.08 per cent to close at 25246.25, while the NSE Nifty slipped 73.50 points or 73.50 points or 0.96 percent to settle at 7558.20 in the closing after hitting intraday lows of 25114.30 and 7515.50, respectively.
From broader markets, the BSE Mid-Cap index shed 66.22 points or 0.73 percent to settle at 9,035.25 points and the BSE Small-Cap index lost 27.92 points or 0.28 percent to settle at 9,873.64. Both these indices outperformed the Sensex.
Banking and realty stocks led the decline this day. Among private sector banks, ICICI Bank (down 2.22 per cent), Yes Bank (down 2.15 per cent), IndusInd Bank (down 2.45 per cent) and HDFC Bank (down 1.4 per cent) declined. But, Kotak Mahindra Bank scaled record high of 1.98 per cent to Rs 958 on plan to raise FII investment cap to 40 from 37 per cent.