Shares in Asia declined in trade, with Japanese Nikkei slipping 1.85 per cent in morning trade, while the South Korea's Kospi fell 1.67% while the Kosdaq dropped 1.46%.
The Indian rupee opened higher by 13 paise at 71.75 per dollar on Wednesday versus previous close of 71.88.
This led to a fall in the Sensex and the Nifty with the benchmark indices both dropping. The Sensex fell 220 points, while the Nifty fell 72 points in trade.
Metal stocks continued to fall sharply for the third trading session in a row, with JSW Steel and Tata Steel both among the losers in trade.
Among the few stocks that gained in trade from the Nifty were Coal India and Hindustan Unilever.
Shares in Yes Bank dropped after Care Ratings placed the bonds worth Rs 21,000 crore on "credit watch with negative implications" citing the continued delay in raising core equity capital.
Shares in IRB Infrastructure Developers jumped as the company said it has bagged a contract for operating and collecting toll on Mumbai-Pune Expressway project under the toll-operate-toll model.
Meanwhile, the Indian rupee opened higher by 14 paise at 71.76 per dollar as against its previous close of 71.88. It is likely that the indices would continue to see some selling pressure in the days to come.