Markets ended on a weaker note due to selling pressure in oil refinery, technology, telecom, private banking, realty, FMCG, select power and auto stocks. Sharp cut in European and Asian markets due to renewed financial crisis also added to negative sentiments. News of withdrawal of support by Left parties to UPA government has not played any key role in markets in today's trade. However, buying in capital goods and select power stocks have tried to pull back markets a bit in afternoon session on back of possibility of nuke deal but it did not help to the markets.

Heavyweights like Reliance Industries, Infosys, ITC, ICICI Bank, HDFC, Wipro, ONGC and Bharti Airtel were draggers of indices while L&T, SBI, NTPC, BHEL, M&M and Power Grid supporters.

Ultimately, Left parties have withdrawan their support to UPA government and will meet president tomorrow. Their withdrawal is because the government is going ahead with nuclear deal and will be meeting IAEA. But Samajwadi Party (SP) is ready to support Nuke deal and there is strong possibility that Congress will get vote of confidence with support from SP and RLD.

The Sensex recovered nearly 300 points and Nifty 92 points from day's low of 13,049.96 and 3896.05, respectively. Sensex ended with a loss of 176.34 points or 1.3% at 13,349.65 and Nifty closed at 3988.55, down 41.45 points or 1.03%.

Oil refinery stocks like Reliance Industries, ONGC, Cairn India and Essar Oil have plunged further. Some impact of news of windfall cess on private oil companies has seen today as well. However, oil marketing companies like IOC, HPCL and BPCL have gained due to fall in crude; Crude August Futures went down nearly by $5 at $141 per barrel on the NYMEX. Oil & Gas Index fell 1.56% or 138.78 points at 8,743.36.

Capital goods Index gained 145.72 points or 1.36% at 10,854.14 as these stocks are going to benefit a lot from Indo-US nuke deal. Capital goods stocks like Alstom Projects, Areva T&D, Bharat Elec, Bharat Bijlee, BHEL, ABB and L&T rose 1.5-7%.

Amongst frontliners, Tata Power was down 5.03%, Wipro -4.98%, NALCO -4.02%, Tata Motors -3.80%, Infosys -3.62% and ITC -3.24% while ACC rose 6.21%, BPCL 5.56%, M&M 3.92%, NTPC 3.60% and SBI 2.79%.

Market breadth was negative; about 1284 shares have advanced while 1598 shares declined. Nearly 256 shares remained unchanged.

Most active counters on the bourses were Reliance Industries, Reliance Infra, L&T, Reliance Comm and Reliance Petro.

Turnover traded by markets stood at Rs 56,816.53 crore. This includes Rs 11,066.01 crore from NSE Cash segment, Rs 41,117.91 crore from NSE F&O and the balance Rs 4,632.61 crore from BSE Cash segment.

Asian markets were trading weak. Jakarta Composite was down 1.27%, Nikkei -2.3%, Hang Seng -3.3%, Kospi -3.6% and Taiwan -3.4%.