Nifty's 11,000 strike price call option contract was among the most active contracts on the National Stock Exchange.

Premium on the contract slumped 44 percent to Rs 42.60. Over 8.41 lakh shares were added to the open interest which stood at over 46.68 lakh shares.

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Indian equity benchmarks extended decline dragged by HDFC twins, Reliance Industries and ICICI Bank.

The S&P BSE Sensex fell 0.65 percent or 238 points to 36,246.51 and the NSE Nifty 50 Index dropped 0.66 percent or 73 points to 10,895.

The overall breadth was neutral as 966 shares were advancing while 997 were declining on the BSE.

We should see more downgrades for global growth rate in coming quarters, Neelkanth Mishra, India equity strategist and managing director at Credit Suisse told BloombergQuint in an interview.

Key highlights of the conversation:

• Demand is coming off very sharply and central banks are on a tightening trajectory
• Domestic flows have been much better than FII's in last three years providing stability
• Economic development and domestic flows will determine the momentum
• Consumption as a theme has worked for last eight years and has never corrected meaningfully
• Pay commission is a very large consumption stimulus
• Non-government incomes now need to catch up
• Consumption growth has been slowing and will continue to slow further
• Farm loan waiver doesn't drive consumption
• Some of the market reaction is a bit premature
• We will see more and more such policies as we are seeing more political issues
• Farms and agriculture stress is there since the past two years and won't be resolved soon
• Most governors apart from last two came from finance ministry
• Monetary policy committee has made clear that the focus is on inflation
• After RBI OMO operations and other efforts, it will be important to see whether it improves liquidity

Shares of the Delhi-based packaging company rose as much as 10 percent, the most since July 24, to Rs 239 after it launched sterilisable conduction sealing film.

This film is mainly used in packaging of dairy and bakery products, Cosmo Films said in a press release.

Shares of the Delhi-based flexible packaging company rose as much as 2.15 percent to Rs 280 after it launched three packaging foil solutions for pharma companies.