At the close, the benchmark 30-share index, BSE Sensex lost 324.05 points or 1.21% at 26,492.51. Meanwhile, the broad based NSE Nifty fell by 109.10 points or 1.36% at 7,932.90.

Commenting on the markets, Nidhi Saraswat, senior research analyst , Bonanza Portfolio said, '' Nifty opened on a flat note and after struggling for a while above 8020 level, fell aggressively to low of 7,925 level. The index lost almost 1.5% today and closed near day’s low. Weak global cues and long pending profit booking at higher levels led to selling pressure and broad based selling was witnessed. Small caps and Midcaps went off sharply down. Weaker data from China and US also dampened the market sentiment. Reliance, ICICI Bank, HDFC and L&T were some of the major losers, while stocks like Infosys and ITC showed buying interest.

In coming sessions, 7,900 shall be crucial deciding level in near term, and index is likely to witness further selling below this level.  Below 7,900, likely target is 7,850-7,800, while above 7,950, likely target is 8,000-8,050.''

Major losers were Tata Power (5.85%), Tata Steel (3.45%), Axis Bank (3.14%) and ONGC (2.98%).

The BSE Mid and small caps underperformed their larger counterparts declining -3.42% and -3.99% respectively.

The Realty index was at 1,700.59, down by 60.28 points or by 3.42%. The Power index was at 2,018.94, down by 68.07 points or by 3.26%. The Capital Goods index was at 14,826.48, down by 411.61 points or by 2.7%.