Dealers said that the fall in the market was aggravated with sharp losses in Sensex heavyweights: Reliance Industries (RIL), Hindustan Lever (HLL) and Infosys Technologies.
The BSE Sensex closed down 49.53 points at 3,229.18 points after opening flat at 3,279.50 points. The Sensex in early trades hit a intra-day high of 3,286.94 points. On the National Stock Exchange (NSE), the S&P CNX Nifty closed down 12.05 points to close at 1,035.95 points.
A dealer at a domestic brokerage said: Investors are skeptical of taking any position in the market and investors who had long-positions are trimming their positions on concerns about renewed tensions between India and Pakistan, following the massacre of 28 people in Kashmir by militants on Saturday.