The 30-share Sensex at the close was down 169 points or 0.85% at 19,818 and the Nifty gave up 55 points or 0.90% at 6,002.
The broader markets too cracked today, as both the smallcap and the midcap indices slipped 1.3% each.
After a flat opening, the markets continued to trade weak through the day as weakness in rate sensitives weighed on the indices.
Interest rate-sensitive fell as the Reserve Bank of India Governor D Subbarao stated that India's inflation has come off a peak but is still high, a comment that is likely to cool expectations for a rate cut later this month.
In Asia, shares fell on Wednesday as cautious investors waited for crucial economic data from China later this week, while the yen's extended gains spurred profit taking in Japanese equities after their recent rally.
Japan's benchmark Nikkei average shed 2.6% for its largest daily decline in eight months, sharply reversing Tuesday's rally.
The other major losers were Shanghai Composite and Taiwan Weighted down 0.7-0.8%.
Back home, on the sectoral front, all the indices except Oil & Gas, closed in the red.
Auto, Metal, Banks, Realty, Capital Goods, PSU and Power indices closed down 1% each.
Meanwhile, Oil & Gas index gained 0.3% on the back of gains in Reliance Industries ahead of its Q3 numbers, which closed up 1.6% at Rs 859.50.
All
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