Bombay stocks dropped sharply Tuesday, giving ground for the third straight session after last week's record-setting runup.

The BSE Sensex dropped 268 points to settle at 11,647. Only two of 30 index components rose, with automobile and cement stocks taking heavy losses.

Last week the Sensex surged 7%, cracking 12,000 for the first time Thursday. But the index has dropped each day since.

Tuesday's top loser was pharma major Cipla, which fell 4.7%, followed by Tata Steel , down 4.6%, and Tata Motors ( TTM), which fell 4.2%.

The two gainers in the Sensex were HDFC Bank , up 0.5%, and engineering firm BHEL, up 0.4%.

Indian Petrochemicals fell 5.6% as the company posted 25.8% drop in net profit. Nicholas Piramal fell 3.6% despite swinging to a profit.

This story was created through a joint venture between TheStreet.com and IRIS.