Indian stock indices recorded their biggest single-day decline in over a month, with smaller and mid-cap stocks correcting more than the bluechip indices.
Several of the small and mid cap indices saw their worst day in over two years following two days of declines this week.
The sell-off is seen as a reaction to elevated valuations in the market, according to market participants.
The markets have seen a relentless rise over the last several weeks, which has taken several of these indices to record highs.
Today, Nifty 50 closed 338 points, or 1.5%, lower at 21997.70 today.
The 30-stock Sensex lost 906.07 points or 1.2% and closed at 72761.89 points.
While the correction may continue for a few more sessions, many expect that the stock markets will again find strength, given that elections are around the corner.