The BSE Sensex fell for second consecutive days following the presentation of India's annual budget for the fiscal year.
Corporate sector feels the general budget is too modest, as they expected the government to give more concessions.
The main 30-share BSE index fell 1.2 percent to close at 17,466.20. The 50-share Nifty index also lost 1.2 percent to end at 5,317.90.
Oil stocks led the fall. CNX Energy sub-index dropped 3.3 percent, ONGC dropped 4.7 percent, Oil India dropped 4.5 percent and Reliance Industries fell 3 percent. The Indian energy conglomerate was also affected.
However, ITC Ltd gained 7.9 percent, touching a record high of 225 rupees, caused by the move of the government to raise excise duty on cigarettes. Its shares ended up 3.5 percent.