Equity benchmark Sensex tumbled 171 points on Wednesday, tracking losses in index heavyweights HDFC Bank, ICICI Bank and Infosys amid weak cues from Asian peers.
After slumping 430.09 points during the day, the 30-share BSE index recovered some lost ground and ended 171.43 points or 0.45 per cent lower at 38,193.92.
In similar movement, the NSE Nifty settled 39.35 points or 0.35 per cent down at 11,278.
SBI was the top loser in the Sensex pack, shedding over 4 per cent, followed by Bajaj Finserv, Axis Bank, ONGC, ITC, ICICI Bank, Bajaj Finance, Kotak Bank and HDFC Bank.
On the other hand, Tata Steel, Reliance Industries, IndusInd Bank, Sun Pharma and Asian Paints were among the gainers.
Domestic equities traded on a negative note tracking weak cues from global equities after late-stage studies of AstraZeneca's COVID-19 vaccine candidate were put on temporary hold, traders said.
The company said it is investigating whether a recipient's "potentially unexplained" illness is a side effect of the shot.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses.
Stock exchanges in Europe, however, were trading on a positive note in early deals.
Global oil benchmark Brent crude was trading 1.33 per cent higher at USD 40.31 per barrel.
In the forex market, the rupee appreciated 5 paise to close at 73.55 against the US dollar.