- Tag results for BSE Sensex
The RBI's Monetary Policy Committee (MPC) is scheduled to announce its policy decision later in the day.
After rallying over 500 points to hit the day's high of 36,778.14, the 30-share index gave up all gains and sank to 36,221.32 in late-afternoon trade.
The BSE 30-share barometer dropped 134.05 points, or 0.37 per cent, to 36,444.91 in early trade as index major Reliance Industries, Tata Steel, Tata Motors, ICICI Bank and Maruti Suzuki declined.
The rupee, meanwhile, weakened against the US dollar and was trading at 70.27 a dollar, down 0.27 per cent from its previous close.
HDFC was the only gainer on Sensex, trading marginally higher than its previous close. Financial markets were closed Tuesday on account of Christmas.
The broader NSE Nifty rose 13.90 points, or 0.13 per cent, to 10,805.45. This is the fourth straight session of gain for the benchmarks.
Top gainers on the BSE include Yes Bank HeroMotocorp, Bharati Airtel, M&M, Tata Steel, Kotak Bank, Tata Motors and Axis Bank.
At 9.16 am, the Sensex traded at 34,502.62 points, lower by 457.10 points or 1.31 per cent from the previous close.
The Reserve Bank of India Wednesday left the repo rate unchanged while maintaining the stance of 'calibrated tightening' of policy.
Yes Bank, Wipro, Kotak Bank, M&M, Sun Pharma, Maruti, HDFC, Hero MotoCorp, Infosys, TCS, L&T, Bajaj Auto and HUL were among the top gainers, rising up to 6 per cent.
Heavy selling pressure was witnessed in the IT counters which fell over 3 per cent followed by Teck (technology, entertainment and media) and energy stocks.
Nifty IT index fell 1.8 per cent, while shares of Infosys and Tech Mahindra declined as much as 1 and 3.6 per cent, respectively.
Finance Ministry nominees and some independent directors are expected to take on Governor Urjit Patel and his team later in the day over issues ranging from MSME credit to the central bank's reserves.
Pharma and information technology shares tumbled due to stronger rupee which rose 50 paise to 72.17 against the US dollar (intra-session) in late afternoon trade.
Easing global crude oil prices, which slipped below the USD 70 a barrel, and rupee recovering lost ground also helped build positive sentiments.