Markets ended flat with a negative bias amid a volatile trading session on Wednesday.
The Sensex ended lower by 28 points at 17,145 and the Nifty closed at 5,220 levels down 2 points.
The markets traded in negative territory for most part of the trading session on concerns that the poor show by the Congress in four of the five State assembly elections would make it difficult for the Congress-led United Progressive Alliance to implement reforms.
Meanwhile, the European markets have opened on a flat note. The CAC was up 25 points at 3,387, DAX was up 22 points at 6,655 and the FTSE was trading higher by 11 points at 5,777 levels.
Asian shares fell for a third day in a row on Wednesday as investors grew more risk averse, with renewed uncertainty over Greece's bailout and mounting worries about slowing global economies overshadowing support from ample liquidity.
Japan's Nikkei slipped 62 points to close 9,576 levels. Hang Seng shed 178 points to 20,627 levels.
Taiwan and Shanghai also ended marginally lower.
Back home, Somil Mehta, Senior Technical Analyst (Equity) at Sharekhan expects medium outlook for the markets to remain positive.
"The medium term bias for the market remains positive and the key supports would be 5,160/5,050 and key resistance would be around 5,360/5,510 levels."
Sterlite Industries was the top loser among the Sensex stocks, down 4% to Rs 109.
NTPC, Reliance Industries, Bharti Airtel, BHEL, Jindal Stee, Maruti Suzuki, Coal India, ONGC and Mahindra & Mahindra were also among the laggards, down 1-2% each.
On the other hand, Wipro, HDFC Bank, Bajaj Auto, DLF, Infosys, ICICI Bank, Hindustan Unilever and Hero MotoCorp were among the gainers.
Metal, Oil & Gas and PSU stocks witnessed selling pressure in trades today.
The BSE Metal index eended lower by 1.5% or 169 points at 10,984 levels. Hindustan Zinc was the top loser among the metal stocks, down 3.4% to Rs 109.
Sesa Goa, JSW Steel, SAIL, Coal India, NMDC and Bhushan Steel were also among the laggards.
The Oil & Gas index slipped 1.5% or 125 points at 8,210. The oil marketing companies such as BPCL, Indian Oil and Hindustan Petroleum witnessed selling pressure in trades today as these companies were supposed to increase the petrol prices after the assembly elections.
The move has not yet been executed by these companies till now.
Heavyweights from, this sector like Reliance Industries, ONGC and Gail India also edged lower in trades.
PSU, Power, Capital Goods and FMCG indices also ended in the red.
Shares of information technology companies were in focus, in an otherwise weak market today, after the rupee hit a seven-week low at 50.64/65 to the dollar in early noon deals.
In last one week, the rupee has depreciated by 3.3% from 49.02 on February 29.
The BSE IT index ended higher by nearly 1% at 6,130 levels.
Realty, banking, healthcare, auto and consumer durable stocks also witnessed some bit of buying.
Among the individual shares, Apollo Hospitals Enterprises gained 4% at Rs 590 in early trades, on reports that the Indian healthcare major is planning to set up a second hospital in Bangladesh, at the port city of Chittagong, through a local partner.
IL&FS Transportation Networks Ltd moved higher by 1.5% at Rs 189 after the company said it has emerged as the lowest bidder for the National Highways Authority of India Rs 471 crore (Rs 4.71 billion) highway projects.
The broader markets also ended lower.
The BSE mid-cap index ended lower by 5 points at 6,196 and the small-cap index lost 41 points to close at 6,659.
The overall breadth was negative as 14,690 stocks declined while 1,141 stocks advanced.
Sensex tanks 280 points ahead of UP election results
