The closing session saw auto, FMCG, bank and pharma sectors losing heavily. Similarly, the major losers in BSE Sensex were PowerGrid with 219 points down followed by Tata Motors, Kotak Bank and Hindustan Lever at 387, 994 and 1176 points low during early morning trade.
While IT, technology, PSU indices all firmed up, selling pressure pushed down rate-sensitive stocks such as auto and banking. Experts attribute this fall to the implied volatility due to weekly expiry of Nifty Bank futures. Customers with savings bank account balance of 5 million rupees ($77,924.10) and above will continue to earn interest at 4 percent per annum, the lender said in a statement.
"Indian markets continue to be plagued by volatility in a week truncated by a holiday".
Mumbai: Indian shares rose for a third consecutive session on Thursday, with Infosys Ltd leading the gains after announcing a likely share buyback, while Asian markets rose as tensions between the U.S. and North Korea eased.
Experts also believe that one of the reasons for the fall could also have been based on global cues.
Asian stocks edged higher on Thursday, as tensions between the United States and North Korea came off the boil, while the Federal Reserve's concerns about weak USA inflation weighed on the dollar, reported in Reuters.
Meanwhile, Asian markets closed mixed after a rally in the dollar was halted on political turbulence stateside while investors digested the Wednesday release of the Federal Reserve's minutes.
On the Nifty, the stock gained 4.70 percent or 45.85 points to 1021 level and was the top traded share on the exchange in terms of volume. Across the Korean strait, the Kospi advanced 0.57 percent, or 13.41 points, to end at 2,361.67, as steel stocks rose on optimism about third-quarter earnings.