Continuing to reel under the impact of coal de-allocation by the Supreme Court, Sensex dipped 276 points to 26,468 on Thursday.
The benchmark index opened on the higher side at 26,809 against the previous close of 26,745. It made a high of 26,814 and low of 26,350 before closing at 26,468.
Turnover on BSE was down marginally at Rs 3,624 crore against Rs 3,653 crore recorded on Wednesday.
In NSE, the Nifty was down 91 points at 7,912.
Shares across sectors including banking, oil and gas and metal were down in a trade marked by high volatility as investors rolled over their position from near month to the October contract in the futures and options segment.
Bank stocks extended losses incurred in the previous day’s trading session on concern over bad loans due to their exposure to coal mines after the Supreme Court's decision cancelling most coal block allocations since 1993.
Among PSU banks that declined include Canara Bank (-5%), Union Bank of India (-7%), Bank of India (-8%), Punjab National Bank (-6%), Syndicate Bank (-8%), Indian Overseas Bank (-7%), Oriental Bank of Commerce (-8%), and Dena Bank (-4%).
State Bank of India fell four per cent to Rs 2,378 as the bank after market hours on Wednesday said the board has approved a 10-for-1 stock split.
Andhra Bank tumbled 12 per cent to Rs 64 on reports that it has a loan exposure of Rs 4,346 crore to companies whose coal blocks were cancelled by the Supreme Court.
Major gainers were Aurobindo Pharma (8%), Infratel (5%), Dr Reddy’s (3%) and TCS (2%).
Prominent losers were JP Associate (-19%), JP Power (-14%), JP Infratec (-13%),
IDBI (-11%), Financial Technologies (-10%), Strides Arcolab (-10%), HDIL (-9%) and Adani Power (-9%).