Nifty Bank Index dropped as much as 1,161 points from record high of 31,784.

The S&P BSE Sensex and NSE Nifty 50 Indexes nosedived from near all-time high levels in noon deals on the back of sharp selloff in banking, energy and financial heavyweights like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, State Bank of India, HDFC and Reliance Industries. The Sensex fell as much as 748 points from intraday high of 40,122.34 and the NSE Nifty 50 Index dropped over 200 points to fall below 12,000 mark hit earlier in the day. The sudden selling pressure in equity markets came in noon deals with some analysts pointing to profit booking as the reason behind the selloff ahead of release of GDP data due later in the day.

As of 12:14 pm, the Sensex traded 144 points or 0.37 per cent lower at 39,683 and the NSE Nifty 50 Index was down 0.3 per cent or 34 points at 11,911.

Banking shares witnessed heavy selling pressure as the gauge of banking shares on the National Stock Exchange - Nifty Bank Index - dropped as much as 1,161 points from record high of 31,784.

Meanwhile, fourteen of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Power Index's 1.2 per cent decline.

Metal, Bankex, Utilities, Industrials, Finance and Basic Materials Indexes also dropped between 0.5 and 1 per cent each.

On the flipside, S&P BSE Information Technology Index was top gainer, up 0.7 per cent.

Mid- and small-cap shares were trading on a mixed note as the S&P BSE MidCap Index rose 0.17 per cent while S&P BSE SmallCap Index declined 0.5 per cent.

Grasim Industries was top loser in the Nifty 50 basket of shares, the stock fell 2.85 per cent to Rs 885.50. Yes Bank, Zee Entertainment, Vedanta, NTPC, Tata Motors, Kotak Mahindra Bank, Mahindra & Mahindr and HDFC were also among the the losers.

On the other hand, Tech Mahindra, Asian Paints, Britannia Industries, Indian Oil, Indiabulls Housing Finance, TCS and BPCL were among the gainers.