Bankex is down over 1 percent dragged by Axis Bank (down 8 percent) and ICICI Bank (down 3 percent). Other losers in the Sensex include are Tata Motors, Asian Paints and Adani Ports. Bharti, Hero, Bajaj Auto, Maruti and M&M are gainers in the Sensex.
The market is reeling under pressure as banks continue to grapple with asset worries in September quarter. The Sensex is down 227.53 points or 0.8 percent at 27863.89 and the Nifty is down 55 points or 0.6 percent at 8636.30.
About 1277 shares have advanced, 1015 shares declined, and 178 shares are unchanged.
Gold prices extended gains after touching nearly 3-week highs in the previous session, buoyed by rising physical demand ahead of India's late-October festival season.
The European Central Bank is aware of the growing costs to the financial sector of its ultra-loose monetary policy and would rather not have to keep negative interest rates for too long, ECB President Mario Draghi said on Tuesday.
