File photo. Photograph:( Reuters )
Sensex was trading around 36,618 levels, down 442 points, or 1.2 per cent and Nifty slipped 139 points, or 1.26 per cent, to 10,781.
Domestic equity benchmarks extended their declines for the third day in a row amid news of more and more job losses and slowdown effects in the economy.
At close, Sensex fell by 587.44 points or 1.59 per cent to 36,473, while the Nifty declined by 177.35 points or 1.62% per cent to 10,741.35.
The rupee has extended losses and trading at 2019 low. It is trading 31 paise lower at 71.86 per dollar versus previous close 71.55.
Among sectors, except IT other indices ended lower led by the metal (down 3.5 percent), PSU Bank (down 3.7 percent), energy (down 2.3 percent), followed by auto and infra.
Majority of the Nifty sectoral indices were trading in the red. Nifty Realty and Nifty Metal indexes, down 5.3% and 3.6%, respectively, took the deepest cuts.
Foreign Institutional Investors (FIIs) on Wednesday sold scrips worth Rs 770.81 crore while the Domestic Institutional Investors (DIIs) offloaded stocks worth Rs 353.97 crore.
Analysts said that an extended slowdown in the domestic economy has increased the volume of stressed assets in segments like industrial, infrastructure and financials.