The 30-share index Sensex was trading 289 points down with real estate and metal scrips in the negative terrain.

The pessimistic signals from Asian markets also pulled down outlooks.

The Sensex of the Bombay Stock Exchange (BSE), which belled the day at 20,529.74 points, stood at 20,299.90, down 289.19 points (1.4%) as against its last closure at 20,589.09.

In contrast, the broad-based Nifty was trading 1.35% down at 6,110.80.

Broader market indices were also trading in the red zone.

The BSE madcap index slipped 1.34% whereas the BSE smallcap index remained down by 1.44%.

Real estate, metals, consumer durables topped the losers' chart.

The top losers in the Sensex pack included M&M, Hindalco, DLF and RCom.

The overall breadth of the stock market was negative as it witnessed 830 advancements as against 2,108 declinations.

Other Asian bourses also remained negative after reports that China's central banking institution might further raise interest rates.

The Shanghai Composite index lost 5.16% to trade at 2,985.43.

Hong Kong's Hang Seng shed 1.83% to trade at 24,247.61.

The Japanese bourses closed 1.39% lower at 9,724.81.