After falling over 700 points in the previous session, the S&P BSE Sensex extended its fall and closed 118 points lower on Thursday.
However, IT bucked the trend due to weak rupee that went past 64 to dollar level on consistent sell off by foreign institutional investors.
The recovery in late trade led by short covering cut down the day’s losses by more than half.
The 30-share BSE Sensex fell as much as 293 points intraday, before closing at 26599.11, down 118.26 points.
The 50-share NSE Nifty ended 39.70 points lower at 8057.30 after hitting an intraday low of 7997.15, continuing the fall for the third consecutive session.
Foreign institutional investors sold shares worth nearly Rs 1,700 crore on Wednesday, in addition to their Rs 756 crore worth of shares sell off in previous session.
Experts believe the major factors that contributing to this fall are consistent ambiguity over GST & Land Bills and MAT concerns, which forcing FIIs to shift money from India to other Asian countries.
TCS, Bajaj Auto, Coal india, ITC, Hero Motocorp, Wipro, Infosys, M&M are among the gainers. Axis bank, ONGC, Maruti, Hindalco, ICICI bank, Tata Power, Dr Reddy’s were among the losers.