Sell-off continued on the second consecutive day amid volatility due to October F&O series expiry as well as weak global markets.
At close, the Sensex was down 172.61 points or 0.43% at 39,749.85, and the Nifty was down 58.80 points or 0.50% at 11,670.80.
“As expected, the Indian stock market has turned its focus from Q2 result to international developments as the global market is worsening. Markets across the world are volatile because of rising COVID cases impacting the recovery of economy and ambiguities over the US election and stimulus package," said Vinod Nair, Head of Research at Geojit Financial Services.
"Additionally, today Indian indices ended weak following October monthly F&O expiry. This weakness can stay for the short-term, a reversal can happen as strong fiscal and monetary stimulus is expected from governments and central banks," he added.
Selling was witnessed in auto, pharma, metal, FMCG and Infra, while IT and Energy indices ended in the green.
The S&P BSE midcap index ended flat, while the smallcap index fell 0.5 percent.
The top losers on the Nifty included L&T, Titan Company, ONGC, Adani Ports and Tata Motors, while top gainers were Asian Paints, UltraTech Cement, Shree Cements, HCL Tech and Kotak Mahindra Bank.
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Stocks & sectors
Sectorally, the BSE Capital Goods Index shed more than 2 percent and FMCG index fell 1 percent.
The BSE Auto index slipped 1 percent, while pharma index was down 0.7 percent.
A volume spike of more than 100 percent was seen in Coforge, L&T and Cholamandalam Financial Holdings.
Long buildup was seen in Godrej Properties, SRF and Berger Paints, while short buildup was seen in PFC, L&T and Escorts.
Berger Paints, Just Dial, Jet Airways and Tanla Solutions were among the stocks that hit a fresh 52-week high on the BSE.
The Nifty formed a bullish candle as it closed higher than its opening zones but the occurrence of a long upper shadow indicates that bears are putting sustained pressure at higher zones amid weakness in global markets.
Index has turned highly volatile in the last couple of sessions and got stuck in a wider range where declines were being bought while multiple hurdles are intact at 11,950-12,020 zones.
“Now, it has to cross and hold above 11,750-11,777 zones to get the bull’s grip for a bounce towards 11,900 levels while on the downside major support exists at 11,550-11,500 zones,” Chandan Taparia of Motilal Oswal Financial Services told Moneycontrol.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.