A massive sell-offs were noticed in banking, realty, infra, financial service and auto sectors.
Frontline indices extended losses for the fifth consecutive session, especially after the reports that the ICICI Bank managing director and chief executive Chanda Kochhar and her Axis Bank counterpart Shikha Sharma have been summoned by the Serious Fraud Investigation Office, in the Rs 12,700-crore PNB fraud case.
Overseas, Asia ended higher as concerns over a potential trade war faded. Japan's Nikkei, China's Shanghai Composite, Hong Kong's Hang Seng, South Korea's Kospi and Australia's ASX 200 ended 1-2 per cent higher.
The Nifty 50 index fell 109.60 points, or 1.06 per cent, to close at 10,249.25, its lowest closing level since 13 December 2017, before moving in a range of 10,441.35 and 10,215.90. It saw an intra-day movement of about 225.45 points.
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On the sectoral front, Nifty PSU bank dropped by 2.87 per cent followed by realty 2.27 per cent, bank 1.49 per cent, auto 1.27 per cent, private bank 1.36 per cent, infra 1.32 per cent, finance service 1.32 per cent, pharma 1.20 per cent, IT 1.18 per cent, FMCG 1.04 per cent, energy 0.76 per cent and metal 0.36 per cent. While, Nifty media rose by 0.42 per cent.
Among the losers were Sunpharma, SBIN, ICICI bank, UPL, M&M, BhartiAirtel, Lupin, Axis Bank and AmbujaCem.
The market breadth, indicating its overall health, remained negative. A total of 359 scrips advanced, 1,437 declined, while 61 remained unchanged.
As many as 198 total securities hit their price bands.
Turnover in the cash segment rose to Rs 29,914.10 crore from Rs 28,502.51 crore as on Monday.
A total of 14,268.23 lakh shares changed hands in 1,06,57,239 trades. The market capitalisation of listed firms on the NSE stood at Rs 1,43,31,240.11 crore.