Global cues such as the Ukraine tensions also dampened the investor sentiments.
The 30-share BSE Sensex dipped nearly 1% or 242.74 points at 25665.27 and the 50-share CNX Nifty shed also shed nearly 1% or 74.50 at 7,672.05.
The BSE Small-cap slipped 1.5% but outperformed major benchmark share indices while the Mid-cap index ended 0.7% lower.
RUPEE
The rupee fell to 61.44/45 weaker than its 60.8450/8550 close on Tuesday.
Good dollar buying was seen from foreign banks likely on behalf of clients looking to exit their equity and debt investments in India.
GLOBAL MARKETS
Asian markets were trading lower as investors turned cautious and booked profit on worries that the geopolitical tensions between Russia and Ukraine could escalate.
The Nikkei ended down 1% at 15,159.79.
Among other major markets in the region, Hang Seng, Straits Times and Shanghai Composite were down 0.1-0.3% each.
European markets were also trading weak in early deals as investors shunned risky assets on concerns over the rising tensions between Russia and Ukraine. The CAC-40, DAX and FTSE-100 were down over 1%.
Sectors & Buzzing stocks
BSE Bankex and Metal indices slumped nearly 2% followed by Realty, Oil & Gas, Auto, FMCG and Healthcare indices, all down between 0.5-1.5% each.
The BSE IT index gained over 0.5% as the rupee was seen trading near 5-month low.
Infosys surged nearly 2% extending its 5% rally in past two trading sessions on reports that the company's former Board members and CFOs recommended an immediate buyback of shares worth Rs 11,200 crore (approx $2 billion) to restore investor confidence in the company's stock.
In the banking space, ICICI Bank, SBI, Axis Bank and HDFC Bank dipped between 1-2% each.
IDBI Bank dipped nearly 7% after posting net profit of Rs 105 crores for the first quarter (April-June) of current fiscal as compared to a profit of Rs 307 crore in the same quarter last year.
Oil and gas major RIL edged 0.65% higher while ONGC dipped 2%.
Among auto makers, Tata Motors, Maruti Suzuki and Bajaj Auto slipped between 0.5-2.5% each. M&M gained nearly 1% while HeroMotocorp edged 0.3% higher.
Cigarette maker ITC slumped over 2.5% and was the top Sensex loser.
Among other shares, Apollo Tyres dipped over 7% after reporting lower-than-expected consolidated net profit of Rs 228 crore for the first quarter ended June 30, 2014 (Q1), due to poor performance of South African business.
The company had registered a profit of Rs 166 crore in the same quarter last fiscal.
Bhushan Steel has locked in lower circuit of 20% at Rs 305, also its 52-week low on the NSE, on back of heavy volumes.
Shares of KRBL surged nearly 17% after the basmati-rice exporting major posted robust earnings for the June quarter.
Saurashtra Cement was locked in upper circuit for second day in a row, up 20% at Rs 53.40, after reporting nearly six-fold jump in net profit at Rs 15.69 crore for the first quarter (April-June) of current fiscal, on the back of strong realizations. The company had registered a profit of Rs 2.72 crore in the same quarter last year.
C Mahendra Exports was locked in lower circuit for third-day in a row, down 10% to Rs 110, also its 52-week low on BSE, with no buyers seen on the counter.
IL&FS Engineering and Construction Company rallied 10% after the company said it has bagged Rs 105 crore contract from Lodha Group for civil construction work of proposed residential buildings in Mumbai.
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