The Sensex has finally ended at 16,767 - down 73 points. Nifty ends down 12 points at 5,061.
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(Updated at 1507 hrs)
The Sensex has suddenly dropped 157 points at 16,679. Nifty is down 56 points at 5,018
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(Updated at 1438 hrs)
Markets slipped into the red taking cues from the European markets which opened lower. The Sensex, after touching a high of 17,035 dropped 216 points from there to a low of 16,819. The NSE benchmark index was down five points at 5,067.
Global markets remained subdued ahead of the eurozone crisis meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel in Paris. Asian markets reversed early gains. The Hang Seng dropped 0.2% to 20,212. Shanghai Composite was down 0.7%. However, Seoul Composite surged 5% in trades - its biggest gain in over two years.
In Europe, CAC dropped 2% while DAX shed 2.4%.
Back in India, inflation for the month of July eased to 9.22%. However, persistent price pressures in manufactured goods have raised the odds that policy will have to stay tight in the economy despite the rising risks to growth. The high inflation print still have most economists thinking that the RBI will have to extend its policy tightening spree.
Most of the sectoral indices erased earlier gains and dropped into the negative zone. BSE realty index has shed 3.7%, followed by metal, healthcare and auto stocks.
BHEL gained 2% in trades to Rs 1,763. Bharti Airtel rose 2% on bargain hunting. In the process, the communication stocks has reversed the last nine day's slide.
TCS and Infosys from the IT pack have gained 1-2% each. Coal India has advanced 1.6% to Rs 392 on a strong set of quarterly numbers.
Meanwhile, Jaiprakash Associates tumbled 6.5% to Rs 58. DLF, Hindalco, HDFC and Cipla dropped 2-4% each. Other losers included Hindustan Unilever, Tata Steel and Maruti Suzuki.