The sell-off was led by banking and other rate sensitive counters on concerns that the central bank might increase rates in near future if inflation continues to rule at high levels. Capital goods, metal and energy related stocks, too, witnessed intense selling.
Trading began on a positive note on the back of firm buying in select heavyweights and buoyant global sentiments. The market soon turned choppy and remained under pressure in the absence of any major trigger.
Trading sentiment was also hit after UK bank Barclays lowered India's FY14 GDP forecast for the current fiscal to 4.7 per cent on concerns over worsening fiscal health.
Meanwhile, barring Japan most Asian market finished higher following a recovery at Wall Street.
Also Read
The 50-share index hovered between a high of 5,909.20 and a low of 5,819.30 before ending at 5,833.20, registering a sharp fall of 49.05 points, or 0.83 per cent.
The gainers among the Nifty stocks included BPCL, HCL Tech, Sun Pharma, Coal India, HeroMoto, UltraTech PNB, ACC, Ambuja Cement and TCS.
Turnover in the cash segment to dropped to Rs 9,541.29 crore from 12,394.57 crore yesterday. A total of 5,474.24 lakh shares changed hands in 50,96,645 trades. The market capitalisation stood at Rs 62,71,636 crore.