The Sensex snapped an eight-day winning streak, while the Nifty broke a six-day gain to end lower on Wednesday ahead of the Federal Reserve's decision on credit policy. While information technology and public-sector banks led the fall, fast-moving consumer goods stocks bucked the trend.
European stocks and U.S. futures advanced, bouncing from Tuesday's loss, ahead of a Federal Reserve meeting at which policymakers are expected to announce their verdict on rate hikes.
The Stoxx Europe 600 rose, with energy shares rebounding and UniCredit SpA climbing after boosting its profit and payout targets. Contracts on the S&P 500 and the Dow were higher after underlying stocks slid on Tuesday on renewed concerns about the health of the banking sector.
Asian markets declined on Wednesday to catch up with overnight moves on Wall Street. Markets are shut in Japan and mainland China for holidays, and there's no trading of cash treasuries in Asia.
The S&P BSE Sensex closed 161 points, or 0.26%, lower at 61,193.30, while the NSE Nifty 50 declined 58 points, or 0.32%, to end at 18,089.85.
Axis Bank Ltd., Infosys Ltd., Larsen and Toubro Ltd., Reliance Industries Ltd., and Tata Consultancy Services Ltd. were among the gainers in the Nifty 50.
Asian Paints Ltd., HDFC Bank Ltd., Hindustan Unilever Ltd., ITC Ltd., and Kotak Mahindra Bank Ltd. weighed on the index.
The broader market indices ended higher and outperformed their larger peers, with the S&P BSE MidCap gaining 0.35% and the S&P BSE SmallCap rising 0.20% at the close of the market.
Twelve out of the 20 sectors compiled by BSE declined, and eight sectors advanced in trade.
The market breadth was split between buyers and sellers. About 1,724 stocks rose, 1,771 declined, and 144 remained unchanged on the BSE.
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