Top heavyweight RIL was also down sharply.
The BSE 30-stock index, Sensex, which gained 49 points yesterday, fell 133.29 points or 0.71 per cent at 18,625.34 led by stocks of Consumer Durables, FMCG and Banks.
The NSE 50-stock index, Nifty, was down 41 points or 0.72 per cent at 5,443.30.
Brokers said selling was more pronounced in banking and interest-related stocks ahead of the RBI's monetary policy on October 30.
A weak Asian trend and lower openings in Europe propelled selling. Investors were also seen reducing their positions following corporate results by bluechips in domestic as well as overseas markets.
Shares of State Bank of India, Punjab National Bank and Indian Overseas Bank dropped on concerns of a potential increase in bad loans in the July-September quarter.
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HUL was down 2.14 per cent, although its net profit rose by 17.12 per cent to Rs 806.92 crore for the second quarter ended September 30, 2012, over the same period previous fiscal.
ICICI Bank was down 0.73 per cent. Its net profit was up 20 per cent at Rs 2,390.37 crore in the second quarter of current fiscal.
Reliance Industries dropped 1.39 per cent, Infosys by 0.69 per cent and Cipla by 1.84 per cent.