The markets opened flat tracking mixed cues from Asian peers. Sensex dipped 85 points, or 0.17 percent at 52,682 while Nifty50 was down 23 points giving up 15,800-mark.
Maruti was the top loser in the Sensex pack, slipping around 1 per cent, followed by ICICI Bank, HDFC, Axis Bank, IndusInd Bank and Tata Steel.
On the other hand, Tech Mahindra, L&T, HCL Tech and Sun Pharma were among the gainers.
In the previous session, Sensex ended 397.04 points or 0.76 percent higher at 52,769.73, and the broader NSE Nifty surged 119.75 points or 0.76 percent to settle at 15,812.35.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 113.83 crore on Tuesday, as per provisional exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, benchmark Nifty appears to be consolidating in the range of 15,600-15,900.
"However, we continue to believe that any meaningful correction in the market should be taken as an opportunity to get in quality stocks.
"Visible improvement in key economic data including IIP, import-export business momentum and visible traction in overall economic activities in June indicates healthy corporate earnings for 1QFY22E despite the second wave of COVID-19," he said, PTI said.
Fuel prices unchanged
The oil marketing companies kept the retail price of petrol and diesel unchanged on Wednesday for the second straight day.
The price of petrol continues to remain at Tuesday's level of Rs 101.19 a litre and diesel Rs 89.72 per litre in Delhi.
In Mumbai, the price of petrol was held unchanged at an all-time high of Rs 107.20 per litre. Diesel price also continues to be at Rs 97.29 a litre, the highest among metros.
In Chennai, petrol is priced at Rs 101.92 per litre while the price of diesel is Rs 94.24 per litre. The price of petrol in Kolkata is Rs 101.35 per litre while diesel is sold at Rs 92.81 per litre.
Oil prices up
Oil prices gained almost 2 percent on Tuesday against the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additinal crude to ship worldwide.
Brent crude rose $1.33 or 1.8 percent to settle at $76.47 a barrel, while US West Texas Intermediate crude rose $1.14 or 1.6 percent to settle at $75.25 a barrel.
Asia markets slip
Shares in Asia-Pacific mostly slipped in Wednesday morning trade following a hotter-than-expected US inflation report for June overnight.
In Japan, the Nikkei 225 slipped 0.14 percent while the Topix index sat above the flatline. The Kospi in South Korea dipped 0.26 percent.
US stocks finished lower Tuesday, after investors sifted through hotter-than-expected US consumer-price index data and parsed quarterly results from some of the country’s biggest banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc.
For the third time this year, shares of Apple Inc., Google parent Alphabet Inc., and Microsoft Corp. closed at record highs on the same day, underscoring their continued success despite a wave of Big Tech antitrust efforts.
The consumer price index in the US climbed 0.9 percent last month. The cost of used cars accounted for more than one-third of the increase, but prices for food, energy, clothing, plane tickets and hotels also rose sharply. The increase easily exceeded forecasts. Economists polled by The Wall Street Journal had estimated a 0.5 percent advance.
The rate of inflation in the 12 months ended in June climbed to 5.4 percent from 5 percent. The last time prices rose that fast was in 2008, when oil hit a record $150 a barrel. The core CPI rose 4.5 percent, the sharpest move for that measure since September 1991 and well above the estimate of 3.8 percent.
Global shares dipped back from record highs on Tuesday as investors digested news of US consumer prices rising by the most in 13 years, reinforcing expectations of tapering by the US Federal Reserve.
Quarterly results today
Infosys, 5paisa Capital, Alliance Integrated Metaliks, Bhakti Gems and Jewellery, Craftman Automation, Dodla Dairy, Essar Securities, Hatsun Agro Product, L&T Technology Services, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and Vikas EcoTech will release quarterly earnings on July 14.
Seven stocks--Granules India, Vodafone India, NALCO, NMDC, Punjab National Bank, SAIL, and Sun TV Network--are under the F&O ban for July 14.