Mumbai: Weak quarterly numbers and the reforms stalemate meant the BSE benchmark Sensex continued its downward journey for the second consecutive day, which fell 259 points on persistent selling pressure.
The rupee, which lost ground as much as 23 paise against the dollar intra-day, dampened investor appetite.
As if this was not enough, China manufacturing activity slumped to a 15-month low, making the overall mood cloudy.
The 30-share BSE barometer went down 258.53 points, or 0.91 percent, to 28,112.31, with all sectoral indices except for consumer durables and FMCG ending in the red.
The gauge has dropped 392.62 points in the past two days.
The NSE Nifty ended the day down 68.25 points, or 0.79 percent, at 8,521.55 after trading between 8,513.50 and 8,589.15 intra-day.
On a weekly basis, the Sensex and the Nifty turned lower by 351 points (1.23 percent) and 88.30 points (1.02 percent), respectively.
The fall in indices tracked the continuing stand-off over legislative reforms, including Goods and Services Tax, in Parliament.
Heavyweights ICICI Bank and Reliance bore the brunt ahead of their results announcement slated later for the day, both of which fell up to 4 percent.
Wipro was down 3.73 percent after its earnings show failed to enthuse investors.
Sector-wise, BSE capital goods (down 1.57 percent) was worst hit, followed by realty.
Broader markets lay low too, with the BSE mid-cap and small-cap indices falling 0.61 percent and 0.58 percent, respectively.
Of the 30-share Sensex pack, 21 ended down.
Globally, most Asian markets fell while European stocks were trading up.
"Markets witnessed a sharp sell-off during the last hour of trade on the back of weak global cues. Investors seem to be sceptical about the passage of GST (Goods & Service Tax). Weakening of the rupee also weighed on the sentiment," said Gaurav Jain, Director, Hem Securities.
According to provisional exchange data, foreign investors net bought shares worth Rs 185.42 crore yesterday.
The market breadth turned negative as 1,582 stocks finished lower, 1,276 higher while 105 ruled steady.
Total turnover moved up to Rs 3,422.43 crore, from Rs 3,402.78 crore yesterday.
"The market is not finding any supporting factor to hold its strength. The market was depending on Q1 FY16 results for providing support to the earnings outlook and Parliament session to kick start reforms, but the market?s confidence is now in question," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.
