The 30-share barometer fell below 27,000 level to intra-day low of 26,972.39 points at mid-session, down by 167.55 points. Later, heavy buying by foreign funds helped the Sensex trim some losses and it settled at 27,085.93, yet showing loss of 54.01 points, or 0.20 percent.

In the longest straight nine-session winning streak of the year 2014, the index had zoomed by 825.65 points or 3.14 percent.

The broader 50-issue Nifty of the NSE fell below 8,100 points level to close at 8,095.95, a loss of 18.65 points or 0.23 percent over Wednesday. The Nifty had gained 209.85 points or 2.65 percent in last five sessions.

"Weak global cues and rise in crude oil prices dampened market sentiment, which led to selling pressure across sectors," Bonanza Portfolio Senior Vice President Rakesh Goyal said.

Shares of realty, metal, capital goods, IT and banking declined. BHEL was the biggest Sensex loser, plunging by 4.44 percent, while Hindalco declined by 3.40 percent.

DLF tanked 8.60 percent after the Punjab and Haryana High Court set aside the state government's decision to allot 350 acres of land in Gurgaon to the realty major in 2010.

Among Sensex components, 19 stocks ended in negative territory, while 11 closed higher.

Construction and engineering firm Jaiprakash Associates tanked 17.60 percent after promoter Jaypee Infra Ventures sold 1.45 percent of shareholding for Rs 62.40 crore through open market sale route.

Bucking the weak trend, Bajaj Auto rose the most by 3.25 percent among 30 Sensex scrips. Gains in NTPC, Hero MotoCorp and HDFC cushioned further losses in the index.

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