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Besides, disappointing factory output data released after market hours on Monday too dragged the key indices to provisionally end lower.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) plunged by 135.45 points or 1.56 per cent to 8,573.35 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,042.62 points, provisionally closed at 27,643.11 points (3.30 p.m.) -- down by 439.23 points or 1.56 per cent from the previous close at 28,082.34 points.
The Sensex touched a high of 28,042.62 points and a low of 27,563.84 points during the intra-day trade.
The BSE market breadth was in favour of the bulls -- with 1,912 declines and 950 advances.
On Monday, the last trading day, both the key Indian indices had made marginal gains on the back of positive global cues.
The barometer index had closed higher by 21.20 points or 0.08 per cent to 28,082.34 points, while the NSE Nifty inched-up by 11.20 points or 0.13 per cent to 8,708.80 points.