The benchmark Sensex index fell 271 points, or 0.51 percent, to close at 52,501.98 on Wednesday. The Nifty ended 102 points, or 0.64 percent, lower at 15,767.55.
The BSE Midcap index closed 0.95 percent lower and the smallcap index fell 0.68 percent.
The BSE Metal index fell 2.58 percent, and was the top loser among the sectoral indices. BSE Basic Materials, energy, industrials, telecom, capital goods, consumer durables, power and realty indices fell over a percent each.
The benchmark indices retreated from a record high on account of profit booking, said Mohit Nigam, Head-PMS, Hem Securities. Metal stocks are witnessing profit booking from the intra-day high after the news came that China will soon release some base metals from state stockpiles. As per the recent media report the activity is picking up in the passenger vehicle market after several weeks as states have started unwinding restrictions. Out of around 25,000 auto retail outlets in India, more than 20,000 were open on Tuesday.
Tata Consumer Products, NTPC and Nestle were among the top gainers in Nifty 50 while Adani Ports, Tata Steel and JSW Steel were among the top losers in Nifty 50 today. Immediate support and resistance are intact at 15,600 and 15,850 for Nifty 50.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Ltd, said the market remained in a narrow trading range with a negative bias ahead of the Fed’s meeting in the US. On Wednesday, there was a big drag on the metal index due to specific announcement from China on the increase of supply in commodities. "After the outcome from the Fed, we need an opening of the market above the levels of 15,830/52,750, which would push the market towards, 16,000/16,100 (53,300) levels. In case the market opens lower and breaks the level of 15,580/51,850, then the chances of hitting 15,500/15,430 (51,600/51,400) would turn bright," Chouhan added.
On the sectoral front, infra, metal and power indices fall 1-2 percent, while some buying is seen in the FMCG and IT names. Sumeet Bagadia, Executive Director, Choice Broking, said, "Technically, the index has confirmed a shooting star candlestick pattern on the top which suggests correction in the counter. Furthermore, the index has given closing below 21&50 HMA, which further adds bearishness to the counter. Moreover, Hourly Momentum Indicator MACD is also showing negative crossover, which indicates weakness for the near term. At present, the Nifty seems to have resistance at around 16,000 levels while immediate support shifted up to 15,650 levels," he added.