The Nifty and the Sensex shed value for the third consecutive trading session this week.
The Nifty closed at 5288, down 47 points (0.88 per cent) and the Sensex at 17491, down 141 points.
Dealers said positions were being unwound ahead of the August F&O expiry on Thursday.
“Stock specific action has been seen. Without any change in fundamentals, scrips are losing value. It is more of a settlement pain during derivatives rollover,” said Mr.Kishor Ostwal CMD CNI Research.
Realty, Metal, Auto, Infrastructure and PSU stocks were the largest sectoral losers on the NSE.
Volatility was up 2.4 per cent and the India Vix closed at 16.74.