Benchmark indices the Nifty and the Sensex ended marginally in the red for a second straight day on lack of cues.
The Nifty closed at 5,335, down 16 points while the Sensex closed at 17,632, down 47 points.
Dealers said fatigue had set in and it required concrete fiscal measures on the part of the government to take bourses up.
“Many mid-cap stocks faced huge sell off due to margin calls. Unless the marked reforms are not introduced, these kinds of falls will keep on happening,” said Mr Kishor Ostwal, CMD, CNI Research.
IT, FMCG, pharma and Energy were the only indices to close in the green. Mid-cap and small cap indices lost in excess of one per cent.
Volatility was lower than yesterday and the India Vix closed at 16.35, down 0.73 per cent.
PowerGrid, TCS, Asian Paints, Dr Reddy's and Sun Pharma were the top five gainers on the Nifty while Sterlite, Jindal Steel, JP Associates, Hindalco and Sesa Goa were the top five losers.