The Nifty was down 29 points in early trade, while the Sensex lost 97 points. Among the early losers were stocks from the banking sector led by ICICI Bank, IndusInd Bank and HDFC Bank.
PSU Banking stocks also saw intense selling pressure with notable losers being Bank of Baroda, Canara Bank, Bank of India and Union Bank of India.
Other notable losers from the Nifty were Larsen and Tourbo and Ultratech cement. Coal India fell almost two per cent after reports that the company has been penalised for using its monopoly and supplying poor quality coal.
There were very few gainers from the Sensex in trade with ITC and HUL among the winners. Shares of Bharti was also trading in the green after the company inked a deal with Reliance Jio.
NTPC which had fallen sharply on Tuesday recovered some ground and was trading marginally higher. Mid cap stocks saw some selling pressure in trade with Voltas which has been consistently rallying losing some ground.
Other notable losers were Crompton Greaves and IFCI.
Software stocks which had a good run on Tuesday shed gains with notable losers from the space being Wipro, Infosys and Tata Consultancy Services.
Meanwhile, markets in Asia were trading with losses followed by weak overnight closing in the United States.
Indian markets are expected to take cues from key economic data which emerges later this week.