Benchmark share indices came off their fresh record highs to end lower for the second straight session on account of profit taking in Index heavyweights.
Also, weakness in the global markets weighed on the bourses.
Prospects of an economic recovery stated by Moody’s and higher growth rate of the Indian economy declared by the OECD failed to cheer the sentiments of the market participants.
The Sensex ended 130 points lower at 28,033 after hitting life-time high of 28,294.01 and the Nifty ended down 44 points at 8,382 after touching an all-time high of 8,455.65.
Meanwhile, Moody's revised its outlook on India's corporate sector to stable from negative on expectations of economic recovery and enhanced access to global capital markets.
The report also factors in successful implementation of pro-market policies that will likely lead to improved corporate cash flows.
Organisation for Economic Cooperation and Development, the Paris-based think tank forecast that Asia's third-largest economy would grow by 6.6% in 2015, up from its last forecast of 5.7% growth in May.
In the broader market, both BSE midcap and smallcap indices which gained during the early trades with BSE Small-cap index hitting fresh six-year high of 11,550 levels ended the trading session nearly 0.6% down on profit booking.
The rupee is trading at 61.92 against US dollar versus yesterday’s close of 61.74.
The rupee is seen heading to 62 a dollar due to dollar demand from oil marketing companies and importers.
Foreign institutional investors were net sellers in Indian equities worth Rs 100.98 crore on Tuesday, as per provisional stock exchange data.
Global Markets:
Japanese stocks turned lower on Wednesday as investors booked profits as they took stock of Prime Minister Shinzo Abe's decision to delay a sales tax hike, and the challenges policy makers continue to face to re-energise a tottering economy.
The Nikkei benchmark closed down 0.3% at 17,289, reversing slim gains in the morning session.
Market participants said a wait-and-see mood ahead of a press conference by Bank of Japan Governor Haruhiko Kuroda encouraged profit taking.
Meanwhile, Hong Kong shares fell for the third consecutive day, dragged down by disappointment that the highly-anticipated Shanghai-Hong Kong stock connect scheme was not bringing capital southbound from the mainland.
Announced in April, the plan had once pushed large caps sharply higher on expectations of fresh cash inflows, but analysts and traders said the initial response has been weaker than previously expected.
European stocks are trading mixed with DAX and CAC 40 up 0.3% tracking a rally on Wall Street where both the Dow and S&P 500 closed at record highs, helped by recent M&A activity.
Sectors & Hot stocks:
On the sectoral front, BSE Metal index is the top loser down over 2%.
BSE Oil & Gas, Consumer Durables and Power indices are down between 1-1.5% followed by Bankex, Realty and Auto indices trading lower between 0.5-1%.
However, BSE IT index is the top gainer by nearly 0.3%. FMCG major HUL gained 1% as falling inflation raised hopes of higher spending and margins.
ITC ended 0.4% lower. An increase in tobacco prices to be effected in the next 10 days by ITC and other tobacco-buying companies against the background of the fall in tobacco prices.
Bharti Airtel ended the trading session with marginal gains as the company is seen to have insulated itself from the uncertainties of spectrum bidding in the 900 Mhz band slated in February next year by purchasing extra bandwidth in 1800 Mhz space.
Global software major Infosys has appointed Anup Uppadhayay the new chief executive officer (CEO) and Deepak Bhalla the new chief financial officer (CFO) of its (business processing outsourcing (BPO) subsidiary. Infosys and Wipro ended with marginal gains on the back of depreciating rupee.
ICICI Bank, Bajaj Auto and HDFC are some of the notable names in green among others and are up between 0.5-1%.
Pharma shares ended mixed on the back of a probe initiated by the US legislature against Sun Pharma and Dr Reddy's over the steep increase of their drug prices in the US market is set to intensify.
A panel formed by the Congress will hold its first hearing on November 20.
Dr Reddy’s Lab surged 2.5% whereas Sun Pharma lost nearly 2%. Cipla lost 1.5%. GAIL declined 2.5% shrugging off the news that it is likely to sign a gas-supply agreement with Houston-based Vega Energy Partners shortly.
The deal is for supplying gas to the Cove Point LNG Terminal project located at Lusby in Maryland, US.
The metal shares witnessed selling pressure.
Tata Steel, Sesa Sterlite and Coal India were down between 1.5-3%. Index heavyweights RIL, SBI, Tata Motors, M&M and Axis Bank lost between 1-2.5%. ONGC declined 1.7%.
The roadshows by the government to attract investors to the planned 5% stake sale in the company got underway. Roadshows will be held in Singapore, Hong Kong, London, New York and Boston.
NTPC ended 2% lower. Fitch Ratings has assigned BBB- rating to state-run NTPC's proposed $2 billion medium-term note programme.
Shares of mobile services provider OnMobile Global soared 9% to Rs 63.90, also its 52-week high on BSE, on back of heavy volumes.
Shares of Eicher Motors gained 5% on the BSE on reports that VE Commercial Vehicles, a 50:50 joint venture between Eicher Motors and Volvo Group, is aiming to capture the number one position in the light-to-medium duty (LMD) trucks segment in terms of market share.
Market breadth ended weak on the BSE with 1,838 declines against 1,218 advances.
