The NSE Nifty 50 index was down 1.77% at 14,359.45 and the S&P BSE Sensex fell 1.81% to 47,949.42.
Private banks also suffered as they dropped 2.6%, with top private-sector lender HDFC Bank losing 1.1%, as investors sold off positions fearing that the resurgence in COVID-19 cases would hurt banks' asset quality.
The NSE Nifty 50 index ended 0.5% higher at 14,581.45, while the S&P BSE Sensex gained 0.5% to 48,803.68.
The move came as fresh coronavirus cases in the country hit a record of more than 200,000, prompting the national capital of Delhi to announce movement restrictions for weekends.
India is to fast-track emergency approvals for shots already approved in Western countries and Japan, paving the way for possible imports of Pfizer, Johnson & Johnson, Novavax and Moderna vaccines.
The NSE Nifty 50 index closed 1.36% higher at 14,504.80 and the S&P BSE Sensex ended 1.38% higher at 48,544.06, rebounding after surging infections pushed the indexes to their second-worst session this year on Monday.
"Overall, the market is not very concerned about the restrictions as they are not likely to be as bad as last time, and the central bank too seems to be more accommodative this time," he added.
The NSE Nifty 50 index closed 0.92% higher at 14,819.05 and the S&P BSE Sensex rose 0.94% to 49,661.76.
The benchmark 10-year bond yield briefly rose to 6.19% after the policy decision, but fell to a low of 6.05% after the central bank announced a secondary market government securities (G-sec) acquisition programme.
The blue-chip NSE Nifty 50 index rose 2.3% to 14,845.10 and the benchmark S&P BSE Sensex gained 2.2% at 50,084. Both the indexes fell more than 1% last week.
Major lenders to Bhushan, including State Bank of India Punjab National Bank, Canara Bank gained more than 1% each and ICICI Bank rose 2.3%.
The blue-chip NSE Nifty 50 index rose 1.27% to 14,507.30 and the benchmark S&P BSE Sensex gained 1.2% to 49,008.50. For the week, both the indexes fell more than 1%.
India's top court backed the removal of Tata Group's former chairman Cyrus Mistry, whose family firm owns an 18% stake in the group holding company, Tata Sons.
The blue-chip NSE Nifty 50 index closed down 1.8% at 14,549.40 and the benchmark S&P BSE Sensex dropped 1.7% to 49,180. Both the exchanges saw their worst one-day percentage fall since Feb. 26.
Indian market witnessed across-the-board selling amidst high volatility owing to weak global cues and spike in COVID-19 cases.
The blue-chip NSE Nifty 50 index ended up 1.28% at 14,744 and the benchmark S&P BSE Sensex rose 1.3% to 49,858.24. Earlier in the session, the Sensex and Nifty shed up to 1.43% and 1.28%, respectively.
Sentiments in the short-term, however, are weak due to a rise in COVID-19 cases and volatility in bond yields, Sharma said.
The blue chip NSE Nifty 50 index closed 1.27% lower at 14,721.30, while the benchmark S&P BSE Sensex fell 1.12% to end at 49,801.62. Both indexes have now posted four straight sessions of losses.
A rise in US bond yields has also limited gains for Nifty and Sensex this month to about 3%, versus a 6.6% jump in February.
The NSE Nifty 50 index fell 0.1% to 14,910.45, while the S&P BSE Sensex ended flat at 50,363.96. The Nifty and the Sensex had earlier risen as much as 0.8% and 0.9%, respectively.
The Nifty Bank Index and the public sector bank index were top losers, falling 1.1% and 1.32%, respectively.
The blue-chip NSE Nifty 50 index fell 0.95% to close at 15,030.95, while the benchmark S&P BSE Sensex shed 0.95% to end at 50,792.08.
"At these elevated levels, the (domestic) indexes are exposed to any triggers globally," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services in Mumbai.
The blue chip NSE Nifty 50 index added 0.12% to close at 14,956.20, while the benchmark S&P BSE Sensex gained 0.07% to close at 50,441.07.
Market sentiment also tracked global shares, which were mixed as initial optimism over the US Senate's passing of a $1.9 trillion stimulus bill gave way to inflation fears.