The benchmark BSE Sensex failed to hold initial gains and plunged over 357 points during midsession as funds indulged in selling stocks on concerns over rising tensions in Iraq and surging crude prices.
After rising to 25,688.31 in morning trade on the back of positive retail inflation and IIP data, the Sensex fell back to trade lower by 357.29 points, or 1.40 per cent, to 25,218.92 at 1330 hours.
All sectoral indices were trading lower by up to 5.06 per cent as profit-booking in realty, consumer durables, PSUs, power, capital goods, oil & gas, metals and FMCG sector stocks dragged down the key indices.
The 30-share Sensex had gained nearly 110 points in the previous session.
Brokers said emergence of profit-booking by funds in stocks that had recently witnessed gains and a mixed trend in the global markets, reversed an early rising trend.
Besides, depreciating rupee and surging crude prices in the global markets also influenced the sentiments here.
Similarly, the National Stock Exchange index Nifty declined 102.10 points, or 1.33 per cent, to 7,547.80 after surging to 7,678.50 in early trade.