Mumbai: Caution ahead of the upcoming monetary policy and broadly negative global stock markets dragged the key Indian equity indices lower during the mid-afternoon trade session on Wednesday.
All sectoral indices on BSE and NSE traded in the red led by metal, auto and healthcare stocks. Interest sensitive banking stocks traded 0.6 per cent lower on the BSE.
According to analysts, the markets on Wednesday are affected more from the global factors rather that the upcoming RBI monitory policy.
"The oucome of the two-day RBI monitory policy review meet will be a non-event as far as equity markets are concerned," said Karthikraj Lakshmanan, Senior Fund Manager - Equities BNP Paribas Mutual Fund.
"Broad expectation is that the RBI will hold the policy rates."
Around 2.00 p.m.,the S&P BSE Sensex traded 264.61 points lower at 35,869.70 from its previous close of 36,134.31. It touched a high of 36,048.65 and a low of 35,863.59.
The market breadth was negative as a number of declining stocks was over twice the advancing once. A total of 627 stocks advanced while 1,534 declined at noon.
The NSE's Nifty50 traded 83.85 points lower at 10,785.65.
In addition, crude oil prices remained volatile amid expectations of supply cuts by OPEC, the group of 15 of the world's top oil producers which is to meet on December 7. Brent crude traded lower at $61.02 per barrel.
The rupee continued to depreciate and traded at Rs 70.53 to a US dollar from its close of Rs 70.49.