The benchmark S&P BSE Sensex tanked a whopping 402 points to close at a two-week low of 19,748.19, breaking four weeks of uptrend, following disappointing Q1 results amid steps taken by the central bank to stem the rupee fall.
The Bombay Stock Exchange 30-share barometer, which logged its 30-month closing high of 20,302.13 on Tuesday came off from the highs and dipped to settle at 19,748.19, showing a fall of 401.66 points or 1.99 per cent.
In last four-weeks, it had spurted by 1,375.61 points or 7.33 per cent.
The wide-based CNX Nifty of the NSE also dipped by 143.00 points or 2.37 per cent to end at 2-week low of 5,886.20.
Lower-than-expected first quarter results announced by construction and engineering giant, L&T weighed on the market.
While, it recovered on Tuesday as the markets gave a thumbs-up to the RBI's fresh curbs on gold imports and a drop in US home sales suggested the Fed would continue its stimulus programme.
The Reserve Bank of India's move on late Monday to curb gold imports to slash the current account deficit was one of the reasons that helped boost sentiment in the markets, brokers said. A shift in funds to domestic stocks from the bullion and forex markets also supported the market, they added.
However, the RBI took additional steps to tighten liquidity in a bid to curb exchange rate volatility, which dampened the market sentiment and a result banking stocks suffered heavy losses.