The broader NSE Nifty too struggled and settled below the crucial 7,100-level. All the sectors ended lower with capital goods and realty closing down 3.06 percent and 3.03 percent, respectively.

Higher global advices failed to give tonic to the domestic market, a broker said. Banking stocks, which had witnessed heavy buying yesterday came down crashing hard after country's biggest lender State Bank of India said bad loans are expected to surge in the March quarter, which may impact profits.

Sentiment also took a hit after exports dipped for a 14th month in a row, down 13.6 percent in January to USD 21 billion due to fall in petroleum and engineering goods shipments, even as trade deficit showed improvement.

"After two days of hope filled rally, prices were grounded again, with renewed concerns over NPAs dragged banks lower again, and deflated bullish sentiments," said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas.

The BSE Sensex resumed higher at 23,688.61 and hovered in a range of 23,692.08 to 23,164.54 before ending at 23,191.97, showing a loss of 362.15 points or 1.54 percent.

The index had gained by 602.29 points or 2.62 percent in the previous two sessions. The NSE 50-share Nifty dropped by 114.70 points or 1.60 percent to end at 7,048.25.

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