The Bombay Stock Exchange benchmark Sensex on Thursday lost 228 points to drop from its 33-month record levels, due to profit-booking sparked by reports of high inflation and weak global trends.
The 30-share barometer fell sharply by 227.76 points, to 20,315.32 points, as recent gainers like realty, software exporting and financial stocks tumbled. The index had gained 135.37 points to close at a 33-month high of 20,543.08 on Wednesday.
The broad-based National Stock Exchange index Nifty fell 66.15 points to close at 6,120.30 points.
Weak advices from the global market mainly affected the market sentiment, brokers said.
European markets declined in the early trade ahead of interest rate decision from the Bank Of England and the European Central bank. The key indices in France, Germany and London were trading lower by 0.03 per cent to 0.08 per cent.
Food inflation remained at a high level of 16.24 per cent as of September 25, official data released on Thursday showed.
In the 30-share BSE index components, 17 stocks closed with losses, while 13 ended in the positive zone.
IT stocks, led by Infosys Technologies, closed down after a US report raised concern about the global economic recovery after the private job payroll fell. The software exporting companies get more than 50 per cent of their revenue from the US and European markets.
Infosys closed down over one per cent, or Rs 46.45, at Rs 3,055.25.
The realty sector index suffered the most - losing 2.80 per cent to 3,930.31, followed by the metal index, which fell 1.70 per cent to 17,654.71. The IT sector index lost 1.30 per cent to 6,030.26 and capital goods index fell 1.26 per cent to 16,325.56 points.
With the profit-booking spreading over a wide front, smallcap index lost 0.89 per cent to 10,541.69 and midcap index by 0.68 per cent to 8,369.62.
Asian stocks ended lower, as investors remained cautious ahead of the release of Friday's US job data. The key indices in Singapore, South Korea and Japan fell 0.07 per cent and 0.73 per cent, respectively, while Hong Kong index edged up 0.02 per cent.