A benchmark index of Indian equities markets closed Wednesday trade 71.31 points or 0.27 percent down, as market tried to find support on the last day of US Fed meeting today.
The markets reacted to the US Fed statement that factors the concern of the world economy and maintains rate for a long time till data improves. This, according to analysts, is positive for emerging economies like India.
However, oil prices continued their fall, which has added concern to the market as dollar gets more valued to respective emerging markets.
Analysts said that the Indian markets were moving as per global risk, as domestic factors are uneventful.
Heavy selling pressure was seen in automobile, healthcare, consumer durables and fast moving consumer goods (FMCG), while healthy buying was observed in metal and oil and gas stocks.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 26,724.01 points, closed trade at 26,710.13 points, down 71.31 points or 0.27 percent from the previous day's close at 26,781.44 points.
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The Sensex touched a high of 26,871.91 points and a low of 26,469.42 points in the intra-day trade.
"Tracking the global cues and FII activity, the markets slipped into red in the morning session but managed to erase some of its losses on the back of oversold situation of the markets," said Alex Mathews, head research, Geojit BNP Paribas Financial Services.
The S&P BSE automobile index plunged by 286.77 points, healthcare index fell by 281.75 points, consumer durables index dropped by 126.64 points, and FMCG index went down by 98.64 points.
However, metal index gained by 107.53 points and oil and gas index gained 71.40 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in red. It ended at 37.80 points or 0.47 percent down at 8,029.80 points.
The major Sensex gainers were: Sesa Sterlite, up 3.50 percent at Rs.200.85; ONGC, up 2.16 percent at Rs.342.75; State Bank of India (SBI), 2.08 percent at Rs.302.05; Hindalco Inds, up 1.72 percent at Rs.147.25; and Tata Steel, up 1.04 percent at Rs.393.45.
The major Sensex losers were: Cipla, down 2.92 percent at Rs.605.25; ITC, down 2.33 percent at Rs.371.65; Hero MotoCorp, down 2.30 percent at Rs.3,061.90; Sun Pharma, down 2.19 percent at Rs.811.75; and Bharti Airtel, down 1.99 percent at Rs.343.15.