Mumbai: India's benchmark indices fell over 1 per cent on Wednesday, taking cues from global peers. Also, a slight increase in international crude oil prices pulled down the Indian rupee, dampening investor sentiments.
That apart, the derivative expiry of the October series led to a volatile trading session as traders rolled over positions in the F&O segment from the October 2018 series to November 2018 series.
However, the massive outflow of foreign funds witnessed in early October continued as FIIs (Foreign Institutional Investors) sold stocks worth Rs 1,495.71 crore on Thursday.
In the 17 trading session from October 1, foreign investors have sold stocks worth over Rs 23,500 crore, highest in the previous 12 months.
The provisional data with the exchanges showed domestic institutional investors bought scrip worth Rs 339.60 crore.
The Indian rupee weakened to Rs 73.28 to a US dollar, from its previous close of 73.15, as the benchmark Brent crude oil price rose to around $76.61 a barrel.
India imports around 80 per cent of its crude oil requirements, and an increase in prices of the dollar-denominated commodity pressures the country's current account deficit.
The BSE Sensex, which had opened at 33,778.60, lost 343.87 points, or 1.01 per cent, to close at 33,690.09.
It touched a high of 33,838.76 and a low of 33,553.18 during the day's trade.
The NSE's Nifty settled about 100 points, or 0.98 per cent, lower at 10,124.90.
"US stocks dropped yesterday as mixed corporate earnings and weak housing data fuelled anxiety that rising prices will crimp economic growth," said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
"Most Asian stocks declined as concerns mount that corporate profits and economic growth are peaking amid rising borrowing costs," he added.
Said HDFC Securities' Retail Research Head Deepak Jasani: "The weakness was led by a slid in index pivotals HDFC, Reliance Industries and HDFC Bank. It was also the derivative expiry of the October series and trading was volatile as traders rolled over positions in the F&O segment from the near month October 2018 series to November 2018 series.
"Sectorally, the top gainer was the IT index. The top losers were Media, PSU banks, Pharma, Realty and Metal indices."
In the broader markets, the S&P BSE Mid-cap declined 0.58 per cent while the S&P BSE Small-cap was down by 0.98 per cent from its previous close. The BSE market breadth was negative with 937 advances and 1,569 declines.
"Technically, with the Nifty correcting, traders will need to watch if the index can now hold above the immediate supports of 1,0079, else a further correction is likely. Any rallies could find resistance at 1,0196," Jasani said.
The top gainers on the Sensex were Wipro, up 3.30 per cent at Rs 319.35; Coal India, up 1.66 per cent at Rs 281.65; Kotak Mahindra Bank, up 1.41 per cent at Rs 1,193.85; Asain Paints, up 0.89 per cent at Rs 1,200.60 and Mahindra and Mahindra, up 0.16 per cent at Rs 733.80.
Major losers included Bharti Airtel, down 6.60 per cent at Rs 295.85; Vedanta, down 3.47 per cent at Rs 204.50; Tata Motors, down 3.02 per cent at Rs 165.40; Adani Ports, down 2.98 per cent at Rs 304.45; and Yes Bank, down 2.77 per cent at Rs 198.35 per share.