The benchmark BSE Sensex cracked the 27,000-mark on Wednesday by falling 351 points as investors trimmed positions in realty and FMCG stocks as hopes of another rate cut this year took a hit on fears of a drought in the country.

Market took further jolt after services sector activity contracted for the first time in 13 months in May, largely due to decline in new order flows amid competitive pressure.

In last two sessions, the Sensex has lost 1,011.79 points.

The Met department has projected monsoon this year to be “deficient”, which has triggered fears of a drought.

The RBI yesterday lowered borrowing costs by 0.25 per cent but linked further reductions to the monsoon.

Reacting to developments, NSE Nifty ended with a loss of 25.25 points at 8,102.10 -its weakest close since December 17.