The Sensex and the Nifty fell about 0.5 per cent at the closing session on Wednesday on heavy selling in IT, FMCG, TECk and auto stocks amid weak global cues.
The 30-share BSE index Sensex was down 86.74 points (0.46 per cent) at 18,646.30 and the 50-share NSE index Nifty was down 29.25 points (0.53 per cent) at 5,513.
Among BSE sectoral indices, IT, FMCG, TECk and auto stocks fell the most by 1.63 per cent, 1.52 per cent, 1.17 per cent and 1.01 per cent, respectively.
On the other hand, realty and metal indices remained investors' favourite and were up 4.72 per cent and 3.02 per cent, respectively, followed by power 2.73 per cent and oil & gas 2.56 per cent.
Among 30-share Sensex, Tata Power, Sterlite, Tata Steel, SBI and Jindal Steel, were the top five gainers, while the top five losers were HDFC, Tata Motors, TCS, Sun Pharma and ITC.
European stocks fell for a third day as investors awaited guidance from central bankers in Japan to the UK on prospects for future stimulus.
Stoxx 50 was down 9.19 points or 0.33 per cent at 2,781.59, FTSE 100 shed 44.07 points or 0.67 per cent to 6,560.14 and DAX fell 62.20 points or 0.75 per cent to 8,237.53.
Asian stocks fell to their lowest since mid-July early on Wednesday following a second day of losses on the Wall Street as uncertainty about when the Federal Reserve will start to reduce stimulus kept a leash on bulls.
US stocks extended losses into a second day on Tuesday as Federal Reserve official Charles Evans said the economy should be able to shoulder reduced Fed asset purchases later this year, said a report from SMC Global.
Nikkei plummeted 576.12 points or 4 per cent to 13,824.90, Hang Seng shed 200.44 points or 0.91 per cent to 21,723.30 and S&P/ASX 200 fell 94.33 points or 1.85 per cent to 5,011.30.