 "Sensex below 27,100; blue-chips weak")
However, ignoring the trend in benchmark indices, the broader markets were in green with both the mid and smallcap indices up 0.4% and 0.8% respectively.
On the macro front, Indian factory output probably slowed further in July as core industries like mining and cement manufacturing were hampered by the monsoon rains, but more encouragingly inflation was seen easing in August, a Reuters poll found.
Industrial production was seen growing 1.8% from a year earlier in July, slower than June's 3.4% increase, according to the median consensus in a poll of 31 economists.
Sectors & Stocks
FMCG, IT, Capital Goods, Consumer Durables and Oil & Gas indices down 0.7-1% were the major sectoral losers.
Infosys, SBI, RIL, DFC Bank, L&T, Coal India and Hero MotoCorp down 1-2% were the top losers among Sensex-30.
ITC slipped over 1.5% on concerns about tougher tobacco regulations.
M&M lost 1.2% after Kotak Institutional Equities cut the automaker to "reduce" from "add," lowering the target price to 1,310 rupees from 1,404 rupees.
Tata Power, ICICI Bank, Bajaj Auto and Sesa Sterlite up 1-2% were the top gainers.
The market breadth was positive on BSE owing to the strength in broader markets. 1,662 stocks advanced while 1,125 stocks declined.
Global Markets
Asian shares tumbled on Wednesday as markets wagered the Federal Reserve would raise interest rates earlier than expected, sending U.S. bond yields higher and keeping the dollar well bid near 14-month highs against a basket of major currencies.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1.2%. If sustained, it would mark the largest fall for the regional index in nearly six months.
Japan's Nikkei bucked the trend, rising 0.3% on the yen's fall as well as expectations of more buying by the country's pension funds.