The Benchmark index of the Bombay Stock Exchange, Sensex, has fallen as much as 93.1 points to hit 40,558.54 on the downside on Thursday.
The broader National Stock Exchange, Nifty index dropped to as low as 11,965.05, down 34.05 points from the previous close.
Losses in financial, metal and energy stocks pulled the markets lower however gains in IT and media shares provided some support. The government on Wednesday approved stake sales in five public sector companies including Bharat Petroleum, in a move that could help bridge a widening fiscal gap.
Top losers were Bharti Infratel, Bharti Airtel, Bharat Petroleum, ONGC and Coal India, down between 1.26 per cent and 3.24 per cent. Moreover, Reliance Industries, Axis Bank, ITC and Bharti Airtel were also dragged the market.
On the other hand, Zee Entertainment, Adani Ports, Larsen & Toubro and HCL Tech - up between 0.91 per cent and 7.10 per cent - were the top Nifty gainers.
The government on Wednesday allowed telecom service providers to defer payments towards dues for airwaves bought via auction until the end of March 2022. That offered some relief to the companies reeling under piles of debt and hurt by the Supreme Court ruling that they must pay overdue levies and interest of Rs. 92,000 crore. But still that did not reflect on their shares with Bharti Airtel shares fell as much as 2.26 per cent and Vodafone Idea 12.16 per cent in early trade.
Zee Entertainment Enterprises shares jumped 15 per cent after Essel Group on Wednesday said it is planning to sell a 16.5 per cent stake in the company.