The BSE Sensex fell 0.41 percent on Wednesday as heavyweight stocks declined on increasing worries about foreign fund outflows.
The 30-share benchmark index ended 77.03 points lower at 18,552.12 with 18 of its components closing in the red.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 0.36 percent or 20.40 points lower at 5,588.70 on Wednesday.
Investors grew concerned that the rupee touching a record low would prompt foreign investors to hasten selling off Indian stocks.
Meanwhile in the New Delhi bullion market, gold lost Rs 620 to Rs 26,680 per 10 grams while silver plunged by Rs 1,000 to Rs 40,500 per kg.