Markets ended lower Monday for the fourth straight session, slumping to fresh 2-year lows in intra-day trades, after recent data vindicated that India's economic growth is slowing down.
The Sensex touched a fresh two-year low of 15,191 and the Nifty touched a low of 4,560, the lowest level for both indices since August 21, 2009.
The 30-share Sensex ended at 15,379 down 112 points and the 50-share Nifty ended at 4,613 down 38 points.
Meanwhile, the Indian rupee fell by 36 paise to Rs 53.06 per US dollar in early trade today, weighed down by gains posted by the American currency against other peers overseas amid a lower opening in the domestic equity market.
The domestic currency had notched up a smart gain of 94 paise to close at Rs 52.70/71 against the dollar in the previous session on fresh selling of the US currency after the RBI took steps to stem the fall of the rupee.
L&T, HDFC Bank and ICICI Bank were among the major draggers on the Sensex, accounting for an 89 points' loss.
Capital goods shares weakened after October Industrial output contracted sharply and over concerns regarding order inflows. L&T and BHEL touched their 52-week lows in trades today, both plummeting 4% each. Other losers from the pack were Alstom Projects, Suzlon Energy and BGR Energy Systems, down 5-6% each.
BSE Bankex ended lower by 3% at 9,131 as the index bore the brunt of investor
From the pack, ICICI Bank and SBI touched their 52-week lows during the day and ended down 3% each.
Union Bank of India, Axis Bank and Canara bank, down 5-6% each, were other notable losers from the pack.
BSE Realty shed 3% at 1,406. From the Realty space, DLF ended lower by 3% at Rs 188.95.
Meanwhile, the gainers from the Sensex 30 stocks were Tata Motors, Coal India, Reliance Industries, Hindustan Unilever and ITC, up 1-4% each.
Among individual stocks, Jet Airways slipped 7% to Rs 191, extending its 14% fall in the past three trading days, on concerns that the company may have to pay carbon emission tax for flying to Europe.
Orchid Chemicals and Pharmaceuticals tumbled 8% to Rs 124.4 on the back of huge volumes.
In a filing to the stock exchanges, the company announced that it has received sanction for $100 million by way of external commercial borrowings from the banking system to redeem outstanding foreign currency convertible bonds of $117 million and yield-to-maturity when they fall in February 2012.
Jain Irrigation Systems tumbled 7% to Rs 85.55 on persistent selling by investors after a major fire at its Jalgaon unit.
The stock has been in a continuous downtrend from Rs 115, after a major fire broke out in its plastic pipe stocking yard in Bambhori, Jalgaon, and Maharashtra on December 10.
The overall market breadth was remarkably negative as 1,955 stocks declined against 795 advancing ones, on the BSE.
