Global sluggishness along with disappointing domestic macroeconomic data pulled down the NSE-benchmark Nifty by 19 points today as volatility continued to rule for the second straight session.
Uncertainty surrounding the outcome of the recent US Fed meeting amid investor concern over lacklustre domestic industrial output data and accelerating inflationary pressures kept sentiment uneasy.
Technology was the weakest sectoral performer, impacted by the RBS deal cancellation setback for Infosys.
WPI-based inflation soared to 23-month high of 3.55 per cent in July in line with consumer inflation, which also shot up to a two-year high of 6.07 per cent.
However, midcap and smallcap stocks, which are seen as proxies to economic recovery, witnessed flurry of buying activity today.
After a tepid start, key indices staged a smart rebound in late afternoon trade on renewed buying interest in key heavyweights. However, the recovery momentum failed to sustain at higher levels and retreated towards the close.
Meanwhile, other bourses in the region ended fairly mixed as investors keenly awaited the Fed's July policy minutes.
Crude prices fell marginally after climbing to a six-week intra-day high on hopes of an output freeze ahead of US oil inventory data release.
The 50-share Nifty resumed marginally weak at 8,639.80 and hovered between 8,667.10 and 8,603.60 before concluding at 8,624.05, registering a loss of 18.50 points, or 0.21 per cent over its last close.
Technology shares remained under immense selling pressure for the third day after Royal Bank of Scotland (RBS) cancelled a USD 300m contract with India's second-biggest IT services firm Infosys.
The sector's sub-index dropped another 1.68 per cent, followed by Energy (0.61 per cent), FMCG (0.24 per cent) and Infra (0.14 per cent).
However, Metal surged 1.95 per cent, followed by Auto (0.92 per cent), Pharma (0.67 per cent), Realty (0.51 per cent), PSU Bank (0.37 per cent) and Nifty Bank (0.21 per cent).
Small-cap and mid-cap too gained 0.82 and 0.69 per cent, respectively.
Key laggards were TCS, Infosys, Reliance, Adani Ports, ITC, HUL, Asian Paints, Power Grid, Kotak Mahindra, Wipro, Zee, ICICI Bank, Idea and Tech Mahindra.
Notable gainers included HDFC Bank, HDFC, Axis Bank, Aurobindo Pharma, Tata Steel, Bajaj Auto, Tata Motors, Coal India, Yes Bank, ONGC, Bharti Artel and Maruti.
Turnover in cash segment fell sharply to Rs 19,018.91 crore against Rs 21,571.91 crore on Tuesday.
A total of 9,563.79 lakh shares changed hands in 84,66,675 trades. The market capitalisation of NSE stood at Rs 106,98,591 crore.
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