Sensex slipped 62 points to close below the psychological level of 27,000.
The benchmark index opened on the higher side at 27143 against 27057 registered on Wednesday. It made a high of 27151 and low of 26904 before closing at 26996. Turnover on BSE was higher at `3,608 crore against `3,263 crore recorded on Wednesday.
In NSE, Nifty was down eight points at 8,086.
Coal India, NHPC and ONGC declined four per cent, five per cent and four per cent to Rs 361, Rs 21 and Rs 429 in a volatile trade after the Cabinet Committee on Economic Affairs on Wednesday approved stake-sale in these state-run companies.
Sun Pharmaceutical dipped four per cent to Rs 823 on reports that the company's manufacturing facility in Halol, Gujarat is on a surprise inspection by the US Food and Drug Administration. Halol plant reportedly contributes to about 40 per cent of US sales and around 25 per cent of consolidated profit of the company.
Shares of Ranbaxy Labs, which was acquired by Sun Pharmaceutical in April, fell five per cent to Rs 622.
Other pharma stocks such as Cadila Healthcare (down 1.14%), Glenmark Pharmaceuticals (down 0.68%), Wockhardt (down 1.40%), Dr Reddy's Laboratories (down 0.96%) and Lupin (down 1.79%) also declined.
The major gainers were MotherSumi (9%), GMDC (6%), Bharat Forge (6%), Corp Bank (6%), Indian Bank (5%) and REC (5%).
Prominent losers were NHPC (-5%), Ranbaxy (-5%), Sun Pharma (-4%), J&K Bank (-4%), ONGC (-4%) and Coal India (-4%).