The markets opened on a negative note tracking losses in index-heavyweights HDFC, Infosys and ICICI Bank amid a largely negative trend in global markets.
The 30-share BSE index was trading 309.54 points or 0.60 per cent lower at 51,625.34 in initial deals, and the broader NSE Nifty fell 70.45 points or 0.45 per cent to 15,504.40.
Tech Mahindra was the top loser in the Sensex pack, shedding over 3 percent, followed by ITC, HDFC, HCL Tech, Kotak Bank, Infosys and ICICI Bank.
On the other hand, NTPC, PowerGrid, Sun Pharma, Maruti and Reliance Industries were among the gainers.
ITC fell over 2 percent after the company's Q4 results missed analyst estimates. HDFC, ICICI Bank, ITC, and Infosys were among major losers.
Power Grid Corporation of India, UltraTech Cement, NTPC, ONGC, Sun Pharma, Dr Reddy's, Maruti Suzuki, HUL, RIL were among top Sensex gainers.
In the previous session, Sensex ended 2.56 points lower at 51,934.88, while the broader NSE Nifty slipped 7.95 points or 0.05 percent to 15,574.85.
Trends at SGX Nifty suggest 35 points drop to 15,596 at 8.45 AM. At 09:03 AM, the Sensex was down 113.86 points or 0.22 percent at 51821.02, and the Nifty was down 37.90 points or 0.24 percent at 15537.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth 449.86 crore on Tuesday, as per provisional exchange data.
The steady decline in fresh COVID cases and rising recovery rates indicate that India is succeeding in bending the pandemic''s curve, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"With no short-term risks to the market, consolidation is likely in the near term with a stock-specific action in response to the news. Since markets are over-bought and over-valued investors should exercise caution even when the markets are exhibiting surprising resilience," he added.
Asian markets made a steady start on Wednesday while in US, Dow Jones gained a little as investors looked at latest economic data as a sign of rebound and rising inflation. US manufacturing activity grows for 12th straight month despite of supply chain issues.
According to pivot charts, support levels for Nifty 50 are at 15,515 followed by 15,455.47. On the upside, key resistance levels could be around 15,647 and 15,720, said Mohit Nigam, Head-PMS, Hem Securities.
RBI's Monetary Policy Committee's meeting will commence from today and credit policy shall be announced on Friday, which shall act as a guide to market's directions in the coming days. The Market is likely to trade in a range bound scenario while share of companies like Mothersumi Sumi, Muthoot Finance and PVR will be looked forward to as they shall announce results today.
Asian stocks negative
In Asia, bourses in Shanghai, Hong Kong and Seoul were trading in the negative territory in mid-session deals, while Tokyo was trading in the positive territory.
Equities on Wall Street closed with losses in the overnight session.
Oil prices jump
Oil prices settled higher on Tuesday, with Brent hitting above $71 and trading at its highest since March, on expectations for growing fuel demand during the summer driving season in the United States as OPEC+ agreed to boost output, Reuters said.
Brent crude futures for August settled up 93 cents, or 1.3 percent, to $70.25 a barrel after hitting $71 earlier in the session - its highest intra-day price since March 8. US West Texas Intermediate crude for July was up $1.40, or 2.1 percent, to $67.72, according to Reuters.
Petrol and diesel prices have been left unchanged on Wednesday. The prices have been increased for 17 times since May 4. In the national capital, petrol prices were constant at Rs 94.49 and diesel pricesat Rs 85.38 per litre, according to Indian Oil Corporation.
(With PTI inputs)