Asian shares dragged their feet on Tuesday.
Sluggish rise in new business inflows and a cautious approach to costs reportedly led Indian manufacturers to shed jobs in September.
A reading below 50 means contraction in the sector.
The broader NSE Nifty, on the other hand, ended 2.70 points, or 0.02 per cent, lower at 11,555.90 in its third straight day of losses.
It was the second straight week of gains for the benchmarks.
The 50-issue NSE Nifty too cracked below the 10,400-mark and hit a low of 10,323.90 before finishing 99.50 points, or 0.95 per cent down at 10,358.85.
According to Japanese financial services major Nomura, India's manufacturing PMI remained in the expansion zone but suggested some consolidation after the rapid ramp up of activity in December.
IndusInd Bank was down nearly 1% even after it reported a 21% rise in its fourth-quarter profit
The 30-share Sensex is up 253 points at 29,263 and the 50-share Nifty has gained 68 points at 8,829.
The fall was led by banking stocks, with IndusInd Bank, Kotak Bank, Federal Bank, Axis Bank, ICICI Bank, HDFC Bank and SBI declining up to 2.36 per cent.
BSE Metal index has spurted by almost 3% followed by counters like Banks, Realty, PSU and Oil & Gas, all gaining by 2% each.
Markets ended lower on Wednesday, amid weak European cues, as investors turned cautious and booked profits ahead of the release of Fed minutes later today and Infosys' first quarter earnings on Friday.
This is the 14th consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
Markets continued to trade lower in late noon deals after investors booked profits at higher levels post sharp gains in the past three trading sessions.
Indian markets too saw a deep fall as a result of the Federal Reserve's shift in policy and the Nifty and Sensex ended down more then 2.5 per cent in the negative, whereas the Europe is trading in red too.
The biggest losers of the session include Reliance, Infosys, TCS, ICICI Bank, HDFC twins, ITC, Maruti, L&T, HUL, Axis Bank, Wipro and IndusInd Bank, cracking up to 4 per cent.
Benchmark indices weighed down by software and financial shares coupled with weak global cues.
A reading above 50 means the sector is expanding, while a reading below 50 means contraction.
Among sectoral indices, telecom led the chart, spurting 3.08 per cent, followed by oil and gas.
Top losers in the session included Maruti, Tata Motors, RIL, Yes Bank, Adani Ports, Bharti Airtel, Asian Paints, ONGC, HUL, Kotak Bank, IndusInd Bank and Axis Bank, falling up to 5 per cent.
BSE mid-cap index slipped 0.6% at 6,266. Small-cap index held on to gains and traded unchanged at 6,034.
Weakness in the rupee against the US dollar also weighed on domestic stocks. The local unit fell 11 paise to 70.60 against the US dollar intra-day.
The NSE Nifty, however, ended a shade higher by 6.65 points or 0.06 per cent at 10,442.20
BSE market breadth was positive. Out of 2,972 stocks traded, 1,203 shares advanced while 986 shared declined in trades.
Yes Bank, Wipro, Kotak Bank, M&M, Sun Pharma, Maruti, HDFC, Hero MotoCorp, Infosys, TCS, L&T, Bajaj Auto and HUL were among the top gainers, rising up to 6 per cent.
IT, banks and metal shares lose sheen while healthcare stocks surge.
Heavyweights like Reliance, L&T, Tata Motors, ICICI Bank, HDFC Bank, Bharti Airtel, TCS, ONGC and SBI among the draggers.
Reliance Industries among key gainer, ADAG group shines.
Index heavyweights and financials drag.
Top losers in the Sensex pack included TCS, Yes Bank, ITC, Sun Pharma, Reliance, Coal India, Asian Paints, SBI, Maruti, HUL, HCL Tech and ICICI Bank, falling up to 2.91 per cent.
BSE Consumer Durable, Realty, IT, Oil & Gas indices declined between 1-2%.
Markets pared early gains to end lower weighed down by selling pressure in FMCG, oil and auto shares.
Market breadth ended weak with 1,688 losers and 1,205 gainers on the BSE.
Market breadth was marginally lower with 1,474 losers and 1,395 gainers on the BSE.
The market breadth in BSE ended unhealthy with 1,203 shares declining and 894 shares advancing.
Among top losers that dragged down key indices were Infosys, TCS, Reliance, SBI, Tata Steel and ITC, falling up to 2.15 per cent.
Sector-wise, banking, IT, pharma and realty indices drove the market momentum.
