After the Reserve Bank of India hinted at tightening economic conditions to battle inflation, Sensex ended the day in the red at 62,876.30 points after a 266.71-point drop.
Even though Sensex left interest rates unchanged, Nifty settled at 18,647.50 points after a 0.42 per cent drop.
In the domestic markets, stocks for nine out of 13 major sectors remained subdued during the day.