FMCG, oil & gas, financials, technology, auto and metal were worst hit sectors.
Though the latest GDP numbers were above estimates, a host of other concerns like prevailing policy paralysis, worsening current account deficit and high inflation, among others, are weighing heavily on investors' mind.
India's GDP expanded by a modest 5.5 per cent in the first quarter of FY13, sharply down from a robust 8 per cent a year ago. It was also the worst Q1 performance in a decade.
As the blame game over the CAG report on coal blocks allocation continues, there is growing concerns among investors that India's sovereign rating may be downgraded as the economy grapples with a slowdown.
After a sluggish opening, the 50-share key index reacted sharply to GDP data. It touched fresh intra-day lows in mid-afternoon trade.
On the global side, Asian stocks fell to four-week lows ahead of the US Fed policy meet outcome, while European peers traded in the positive terrain.
The Nifty oscillated between a high of 5,303.25 and a low of 5,238.90 before ending at 5,258.50, a steep fall of 56.55 points, or 1.06 per cent, over the last close.
Hero Moto, BPCL, Kotak Bank, IDFC, BHEL, HUL, Coal India, RIL, Axis Bank and NTPC were the top percentage-wise losers from the Nifty bunch. Gainers included Bharti Airtel, Cipla, Sail, HDFC, Ranbaxy, ONGC, Grasim, Gail and HDFC Bank.
The turnover in cash segment dropped to Rs 10,907.47 crore from Rs 15,011.04 crore yesterday. Overall, 6,042.93 lakh shares changed hands in 52,68,757 trades. Total market capitalisation stood at Rs 59,42,510 crore.
