The Indian markets despite paring losses in the afternoon session closed in the red after reports stated that Mulayam Singh Yadav led SP which supports the UPA government from outside might withdraw its support leading to early polls.
The BSE Sensex closed at 18,681.2 down 54 points (-0.29 per cent) and the NSE Nifty settled at 5,633.85 down 18 points (-0.31 per cent).
Most of the sectors closed in the red and lost favour with investors led by capital goods down 1.44 per cent, auto (-0.78 per cent) and metal(-0.71 per cent).
On the NSE, DLF, NTPC, BPCL, Powergrid and ONGC were the top gainers while Bank of Baroda, Heromotocorp, L&T, Tata Steel and IDFC were the top losers.