Goenka Diamond and Jewels (down 20%), Dewan Housing Finance Corporation (down 10.5%), Tribhovandas Bhimji Zaveri (down 8.31%), IVRCL (down 6.6%), GMR Infrastructure (down 5.34%), Orchid Chemicals and Pharmaceuticals (down 5.07%) and Pantaloon Retail (India) (down 5.03%), edged lower.

The BSE Sensex was down 134.44 points or 0.77% to 17,386.68.

According to report, the Intelligence Bureau (IB) has dug out a major stock market scam, involving Ketan Parekh, a broker who was convicted in 2008 for involvement in the Indian stock market manipulation scam in late 1999-2001. He is debarred from trading in the Indian stock exchanges till 2017.

The IB has reportedly discovered that Parekh and associates may be back in markets. The report said cartels may be manipulating stock prices ahead of initial public offers (IPOs) and qualified institutional placements (QIPs), using illegal means to buy in big volumes ahead of the offer, and offloading shares after the offer leading to sharp fall in prices.

Dewan Housing Finance Corporation (DHFL), in its clarification to stock exchanges, said, "Pursuant to a report in a section of the media, wherein DHFL has been named as one of the company in which stock manipulation took place by certain brokers/market manipulators. The company and its promoters categorically deny any knowledge of such manipulation or any connection whatsoever with the so called brokers/manipulators as reported in the media. As one of the leading housing finance institutions in the country, we would also like to place on record that DHFL has always complied with and continues to adhere to all directions/guidelines as laid down by the market regulator from time to time with strong corporate governance practices."