Stock markets retreated from record highs on Wednesday, with the BSE Sensex falling 146 points.
The Sensex closed at 36,373, down 0.4 per cent, while the NSE Nifty settled27 points, or 0.25 per cent, lower at 10,980.
The markets fell after a no-confidence motion was moved against Prime Minister Narendra Modi's government in Parliament.
Metal and auto stocks witnessed a selloff that dragged the key indices lower.
Twenty eight stocks on the 50-scrip Nifty index finished with losses.
Top laggards included Tata Steel, Hindalco Industries, Vedanta and Tata Motors - ending between 2.5 per cent and 5.3 per cent lower.Metal stocks and consumer stocks took a hit with Tata Steel plunging 5.3 per cent and Hindustan Unilever falling 2.1 per cent.Midcap and smallcap stocks, which had pushed the markets higher in recent sessions, fell with the BSE sub-indices declining 1 per cent each.
The Nifty Mid cap 50 index dropped 1.7 per cent."Investors are pulling out money from mid-cap stocks as they are worried about the earnings potential.
So, they are putting money in good (large-cap) companies even if the valuations are expensive," news agency Reuters cited Kotak Securities vice president Sumit Pokharna as saying."Uncertainty is killing the market right now," he said.Punjab National Bank (PNB), Indian Overseas Bank and Corporation Bank rose in early trading on reports that the government will infuse Rs 11,336 crore ($1.66 billion) in five state-run banks.However, the stocks shed gains later on concerns that the infusion may not result in earnings growth.
PNB finished 4.3 per cent lower.
The Nifty PSU Bank declined0.84 per cent.On the other hand, ONGC closed 2.7 per cent and was among the top gainers on the Nifty.
Advances in the stocks came after reports that ONGC has authorised government to sell its 49 per cent stake in helicopter service provider Pawan Hans.