Investors are closely watching the movements of Foreign Institutional Investors (FIIs) as global markets react to recent developments, including Donald Trump's victory in the US elections and China’s restrained approach to economic stimulus.

The S&P BSE Sensex was down 76.81 points to 78,598.37, while the NSE Nifty50 lost 75 points to 23,808.45. Experts suggest that safety is sectors like banking, pharma and IT where growth prospects are good.

The key indices Nifty and Sensex have breached psychologically important levels on concerns about rising inflation, less chances of RBI rate action and profitbooking ahead of Maharashtra Polls.

The BSE Sensex was trading at 78,295.70, down 379.48 points, or 0.48 per cent. Smallcap and midcap indices fell 1.77 per cent and 1.41 per cent, respectively.

Sun Pharma, Trent, HCL Tech, Infosys, and ONGC were among the top gainers on the Nifty index. Britannia Industries, HDFC Bank, NTPC, and Tata Motors were among the top losers.

Bank stocks HDFC Bank and State Bank of India contributed most to the Sensex fall. NTPC, Tata Motors and Bajaj Finance also contributed to the decline.