The Sensex and the Nifty ended the day lower even as FMCG stocks rallied following hopes of lower inflation boosting demand.
The Sensex ended the day lower by 130 points, while the Nifty fell 41 points in trade. Leading the set of losses from the Nifty were stocks like ONGC, Sun Pharma, Tata Steel, Gail and Coal India.
Mid cap stocks saw some selling pressure with India Cement, IGL, Voltas and Crompton Graves tumbling sharply.
PSU banking stocks were the worst affected in trade with Bank of India, Union Bank, Allahabad Bank and Andhra Bank dropping very sharply.
Dr Reddy's was the top performer from the Nifty gaining as much as 2 per cent. SBI which had risen sharply on Tuesday fell and ended the day lower.
IT stocks managed to hold ground amidst decline of the broader market with stocks like TCS, Wipro and Infosys ended the day with modest losses.
Meanwhile, markets across Asia ended the day with gains, while most of Europe was trading flat, ahead of the US Federal Reserve Minutes of Meeting.