Private lenders Axis Bank and ICICI Bank fell by 1.5 per cent and 1.4 per cent respectively while HCL Technologies, Tata Consultancy Services and UPL traded with a negative bias.
Except for Nifty pharma, all sectoral indices at the National Stock Exchange were in the red with Nifty metal down by 7.5 per cent, private bank by 6.9 per cent and auto by 6.1 per cent.
Among stocks, Mahindra & Mahindra rose by 1.2 per cent to Rs 536.75 per share while Power Grid Corporation moved up by 1.1 per cent and ITC by 1 per cent. Kotak Mahindra Bank, HDFC Bank and IndusInd Bank were up by 1 per cent, 0.8 per cent and 0.7 per cent respectively.
The development helped Shanghai blue chips recoup early losses to rise by 0.3 per cent. MSCI's broadest index of Asia Pacific shares outside Japan also moved up by 0.3 per cent.
Among stocks, Bharti Infratel fell by 7.2 per cent at Rs 202.50 per share while Bharti Airtel was down by 3.1 per cent. IndusInd Bank slipped by 3.5 per cent, State Bank of India by 1.3 per cent, Tata Motors by 2 per cent and Britannia by 1.6 per cent.
Among stocks, Eicher Motors was a prominent gainer by moving up 3.8 per cent to Rs 19,948.10. Britannia, Yes Bank, Asian Paints and HDFC were in the green with marginal gains.
Meanwhile, Asian indices traded marginally higher as market participants watched for developments on the US-China trade front ahead of high-level negotiations.
The government led by Prime Minister Narendra Modi has unveiled various measures to arrest the falling growth -- from rolling back of higher tax surcharge for foreign investors to mega reforms in the public sector banking space.
Tata Steel and JSW Steel were down by 2.4 per cent and 2.2 per cent respectively. Zee Entertainment, Tech Mahindra and HCL Technologies also lost between 1.7 per cent and 2.8 per cent each.
Global markets also turned cautious ahead of the two-day meeting of US Federal Open Market Committee. Many experts said the Fed may cut interest rate by 25 basis points.