The BSE benchmark index Sensex fell for the third straight day by losing 208 points on increased profit selling by funds in IT, capital goods and realty stocks.
The 30—share index dropped by 207.70 points, or 0.92 per cent, to close at 22,277.23 points. It had lost 230.40 points in last two sessions.
On similar lines, the broad—based Nifty of the National Stock Exchange fell by 57.80 points, or 0.86 per cent, to 6,675.30 led by realty, IT and capital goods sectors.
Marketmen said selling pressure gathered momentum as rising inflation fuelled fears the Reserve Bank of India might keep the key interest rates high.
They said investors and major market participants were cautious ahead of the earnings by major software exporter Tata Consultancy Services.
In 30—BSE index components, 22 stocks closed with losses.
Reliance Industries, TCS, Tata Motors, Infosys, Larsen and Toubro and NTPC were among major losers.
The rate—senstive realty sector index suffered the most by losing 3.87 per cent to 1,452.25 followed by IT index by 2.49 per cent to 8,800.81.
Capital goods sector index fell by 2.47 per cent to 11,886.03 and teck index by 2.14 per cent to 4,901.29.