India’s key equity indices surrendered the gains, extending losses for a third straight session on Thursday amid uncertainity due to the ongoing state elections.
The BSE Sensex has lost close to 800 points in the past three days.
Heavy selling pressure was witnessed in the metal, power and banking stocks, which fell over 1 per cent each, whereas the index pivotal finance counters declined 0.83 per cent.
The Sensex settled down 218.78 points or 0.62 per cent at 34,981.02, from its previous close of 35,199.80.
It touched an intra-day high of 35,364.50 and a low of 34,937.98.
The Nifty50 lost 73.30 points or 0.69 per cent to finish at 10,526.75.
The weakness in equities mirrors a global trend, led by the United states, as global growth is seen buffetted by trade tensions between the US and China.
The decline in crude oil prices, which have crashed nearly 30 per cent since early October, comes amid expectations of slowing demand and rising US inventories.
After touching an $86-a-barrel mark in early October, the Brent crude oil has slipped below $64 following US decision to exempt 8 countries, including India and China, to continue buying oil for six months from Iran despite sanctions.
The decline in crude oil, which accounts for a large import bill for India, has propped up the rupee to 71 per dollar, after touching an all-time high of 74.47 on October 11.
It is currently trading at 71.08 to a dollar, gaining 37 paise from its previous close of 71.45.
Mahindra and Mahindra, Tata Steel and Wipro lost the most on the Sensex while Adani Ports, Larsen and Toubro, and TCS were the top gainers.