At 12 PM, the S&P BSE Sensex is trading at 29250 down 234 points, while NSE Nifty is trading at 9052 down 69 points. That led to a sell-off when Asian markets opened on Wednesday; the Sensex and Nifty shed around 1% at the close of trading.
Consumer durables, auto, FMCG, metal and banking stocks fell the most, while a depreciating rupee against the U.S. dollar also weighed on sentiments.
The key indices closed with losses of around one per cent each.
On the other hand the broader 51-scrip Nifty at National Stock Exchange (NSE) opened at 9,047.20 points after closing at 9,121.50 points.
The BSE market breadth was largely bearish - with 1,872 declines and 937 advances.
"Overnight selling pressure in the United States markets rubbed off on Indian stocks pushing the markets lower from the opening bell", Vijay Singhania, Founder and Director of brokerage firm Trade Smart Online, noted.
Brokers said that the mood was downcast after reports suggested India's GDP may grow at a slower rate of 6.7% in the current quarter, while cues were negative from the global markets where investors remained cautious following the news of North Korea failing a nuclear test and developments on the US President Donald Trump's tax cut probability. "Any fall in the market now provides an opportunity to enter", said Rajat Rajgarhia, managing director, institutional equities, Motilal Oswal Securities.
"Media-entertainment, cement, power and telecom sector stocks also traded lower on profit booking, whereas FMCG sector stocks traded with sideways sentiments due to lower levels buying".
Buying activity was so strong that all the sectoral indices except FMCG ended in the green, rising up to 1.21 per cent.
The Sensex is trading at 29,307.33 points down by 178.12 points or 0.60 per cent.
Auto stocks also lost traction with Mahindra & Mahindra Ltd and Tata Motors falling 2 percent and 1.4 percent, respectively, to pull down the NSE index.