Traders said that shifting of capital towards state-run NTPC's Rs 5,030-crore share sale added to the selling pressure in the broader markets while global cues were also negative on renewed weakness in crude oil.

The 50-share NSE Nifty also broke below the 7,200-mark with a plunge of 125 points. Asian shares came off from a seven-week high as the oil price rally that supported global equity markets fizzled out due to worries over supply glut, brokers said.

Globally, Brent for April dropped 43 cents, or 1.24 percent, to USD 34.26 a barrel today. On Monday, US crude rose back above USD 30 a barrel and European benchmark Brent climbed well over USD 34 on hopes that the discussions to freeze output would lead to concrete action.

Fund managers also remained anxious ahead of the Union Budget, which is due on February 29, as they seek clarity on government measures towards fiscal consolidation.

The Budget session began today during which major opposition parties plan to corner the government on JNU and other issues. Railway Budget will be presented on Thursday, followed by Economic Survey the next day, while the Union Budget will be unveiled by Finance Minister Arun Jaitley on Monday.

The NSE Nifty eased 1.73 percent to 7,109.55 after shuttling between 7,241.70 and 7,090.70. Of the 30-share Sensex pack, 28 lost while Asian Paints and ONGC finished higher.

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