Barring FMCG, all sectoral indices witnessed sharp drops. Oil & gas scrips were the biggest losers followed by technology, auto, metal, financials and infra stocks.
Against the backdrop of deteriorating global economic conditions, investors turned highly cautious and reduced their long positions ahead of tomorrow's F&O settlement and release of April-June quarter GDP data.
After a sluggish start, the market mostly traded in a tight range in early part of the session. It turned volatile in late afternoon and slipped into the red.
On the global side, Asian market, too, traded with cautiousness ahead of the major Central banks' policy meet.
The 50-share Nifty fluctuated between a high of 5,345.50 and a low of 5,282.70 before closing at 5,287.80, a sharp loss of 46.80 points, or 0.88 per cent, over the last close. This was the lowest Nifty level after August 10.
JP Associates, Sail, Sesa Goa, Sterlite Industries, DLF, Bajaj Auto, Hero Motocor, Bharti Airtel, Hindalco and Bhel were the top percentage losers from the Nifty bunch.
Tata Power, Ambuja Cement, Kotak Bank, Jindal Steel, Ranbaxy, Wipro, ITC, Axis Bank, Maruti and M&M gained.
The turnover in cash segment declined to Rs 9,069.75 crore from Rs 9,500.81 crore yesterday. Overall, 5,903.92 lakh shares changed hands in 51,50,418 trades. Total market capitalisation stood at Rs 59,59,435 crore.
