The headline indices fell to a three-week low as investors took gains off the table, continuing to book in recent outperformers as the upcoming quarterly reporting season is expected to be weak.
The 30-share index ended the day at 24,685, down 215.21 points, while broad-based 50-share index quoted 7,546, down 67.90 points at close.
Market breadth turned negative with 19 of the 30 Sensex components ending the day in red.
After surging 10.8 per cent in March, the NSE Nifty is down 2.1 per cent so far this month, after the Reserve Bank of India cut interest rates by 25 basis points as widely expected, and not the 50 bps cut some investors had hoped for.
Markets are now focused on January-March earnings reports amid worries companies continued to suffer due to lacklustre economic growth and weak global demand.
Next week, cement makers ACC and Ambuja Cements, and software services provider Infosys are due to report their earnings results.
"On the earnings front, it's not like we are going to see a robust turnaround. So from a short to medium-term perspective, for those who have low risk appetite, I think it is prudent to book profits," said Gaurang Shah, vice president at Geojit BNP Paribas.
Auto maker Maruti Suzuki fell 2.81 per cent, as the yen hit a fresh 17-month low against the dollar in Asian trade. Every 1 per cent appreciation in the yen affects 15-20 bps of operating margin for Maruti Suzuki, according to broker HSBC.
HDFC dropped 2.58 per cent after the private housing lender said it would set aside 4.5 billion rupees ($67.66 million) as special provision for the quarter ended March 31.
Among the gainers, Future Retail, which operates Big Bazaar and Home Town retail chains, rose over 5 per cent after asset management firm SSG Capital said it would buy 40 per cent stake in Future Retail's logistics unit Future Supply Chain. The scrip ended flat.
Meanwhile, Oil spiked above $40 per barrel this morning after a 5-per cent jump in the previous session thanks to fall in US inventory draw.