The benchmark Nifty has touched the 5500 mark in the afternoon trade following weak European cues, pulled down by financial, metal, capital goods, technology and power companies' shares. Heavyweight Reliance Industries too was adding pressure on the market, with falling 1%.
The 30-share BSE Sensex shed 205 points to 18,380. The 50-share NSE Nifty was trading at 5,500, down 65 points at 14 hours IST.
Prakash Diwan, Head-Institutional Business, Networth Stock Broking is concerned that the market may lose more sheen for the next three to four months until some of the government policies like fuel price hike and fertiliser is cleared.
On the global front, European markets like France's CAC, Germany's DAX and Britain's FTSE were trading 1-1.5% lower. Even US futures like Dow Jones and NASDAQ were down 0.5% each.
Heavyweights like TCS, Reliance Industries, ICICI Bank, HDFC, SBI, NTPC, BHEL, ITC, Infosys and L&T were down 1-2.5%.
Sterlite Industries and Hindalco from metal space plunged 4% each. SAIL, Tata Steel, Sesa Goa and Jindal Steel lost 2% each.