Equity benchmark Sensex dropped 135 points on Wednesday, weighed by losses in index majors HDFC Bank, Reliance Industries, and Kotak Bank.
The 30-share BSE index ended 135.05 points or 0.26 percent lower at 52,443.71, while the broader NSE Nifty slipped 37.05 points or 0.24 percent to 15,709.40.
Kotak Bank was the top loser in the Sensex pack, shedding over 2 percent, followed by Dr. Reddy’s, M&M, PowerGrid, NTPC, Nestle India, and HDFC Bank.
On the other hand, Bharti Airtel, Tata Steel, IndusInd Bank, and Bajaj Finserv were among the gainers.
"Domestic equities extended losses as weak cues from global markets triggered by selling pressure in Chinese tech stocks due to regulatory overhang weighed on sentiments," said Binod Modi, Head Strategy at Reliance Securities.
Further, persistent selling pressure in financials led by concerns over asset quality dragged the benchmark index. However, positive cues from European markets and buy on dips helped the market to recover from the day's low in the second half, he added.
Elsewhere in Asia, bourses in Shanghai and Tokyo ended with losses, while Hong Kong and Seoul closed with gains.
Equities in Europe were trading on a positive note in mid-session deals.
Meanwhile, international oil benchmark Brent crude advanced 0.76 percent to USD 74.08 per barrel.