Interest rate sensitive realty and banking stocks bore the brunt of selling after the Reserve Bank of India left repo rate unchanged at 7.75 percent, but cut SLR by 0.50 percent to 21.50 percent. Markets were expecting the central bank to continue the rate cut cycle after it surprisingly slashed key lending rate (repo) by 0.25 percent in mid-January.
Poor earnings from some bluechip companies coupled with uncertainty on outcome of the Delhi Assembly polls also affected the market sentiment.
Global market ended mixed after the European Central Bank abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding.
The Sensex lost 465.04 points, or 1.59 percent, to settle below 29,000 level at 28,717.91. The 30-share index has lost 560.93 points, or 1.92 percent, in the last two weeks.
The 50-unit CNX Nifty slipped 147.85 points, or 1.68 percent to end at 8,661.05. The NSE benchmark index has dipped 174.55 points, or 1.98 percent, in the last two weeks.
The S&P BSE Mid-Cap index fell 247.91 points, or 2.31 percent, to conclude at 10,490.68, while S&P BSE Small-Cap index plunged 251.92 points, or 2.22 percent, to settle at 11,077.34.

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