Besides, the broader NSE Nifty cracked below 7,300-level. Shares of drug maker Dr Reddy's fell by nearly 4 per cent after the company's third quarter earnings failed to meet market expectations. It posted a marginal rise in net profit at Rs 579.2 crore for the quarter ended December 31, hit by weak sales in emerging markets like Russia and CIS nations.

Punjab National Bank plunged by nearly 7 percent after reporting a whopping 93.41 percent decline in profit for the third quarter.

Global cues were also muted as Japan's Nikkei nosedived nearly 5.50 percent. China and Hong Kong remained closed for their annual holiday.

"Further, weak quarterly earnings of key corporate, global economic growth prospects and continued selling by foreign portfolio investors raised worries in the minds of investors," said Gaurav Jain Director of Hem Securities.

However, good GDP growth numbers failed to lift the mood, he added. While releasing the GDP numbers for the third quarter yesterday, the government had said that Indian economy will grow at a 5-year high of 7.6 percent in the fiscal ending March, overtaking a slowing China.

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