While the Sensex fell 355 points to 37,809 with 24 components in the red, the Nifty ended 102 points lower to 11,354. Meanwhile, the mid cap and small cap indices closed 160 points and 171 points lower on BSE.

The 30-share index opened on a positive note at 38,452.47, but soon succumbed to heavy selling pressure, touching an intra-day low of 38,089.36. It finally closed at 38,164.61, down by 222.14 points, or 0.58 per cent.

The share price of Tata Power rose up to  2.5 per cent on BSE as the company's strategic engineering division (Tata Power SED) bagged Rs 1,200-crore air surveillance radars contract from the Ministry of Defence.

The SpiceJet share price surged in trade today amid a report that the Ajay Singh-owned carrier is planning to buy as much as 40 aircraft of Jet Airways from lessors.

With Etihad Airways looking to exit the beleaguered Jet Airways, lenders are set to re-initiate talks with the Tata Group as a possible new investor in the Indian airline.

While the Sensex rose over 167 points to 38,553, Nifty gained 32 points to 11,552. Bharti Airtel (3.75%), NTPC (2.40%) and L&T (1.56%) were the top Sensex gainers.

  After opening lower with a gap down at 5.83 per cent, Jet Airways' stock further plunged down 6.6 percent to the day's low of Rs. 213.95.

The market has turned flat following Nifty trading down by 0.08 per cent and Sensex up by 0.09 per cent.

At the interbank forex market, the rupee opened lower at 69.11 and weakened further to 69.17 on increased demand from importers. However, it recovered partially to quote 15 paise down at 69.15 against the dollar.

The 30-share Sensex was trading 80.70 points, or 0.21 per cent, higher at 38,444.17. The gauge had gained nearly 1,500 points in the previous seven sessions.