Sensex closed at 74,502, down 667 points or 0.89 per cent, while Nift closed at 22,704, down 183 points or 0.80 per cent.
Banking index Nifty Bank also declined by more than 1 percent and closed at 48,501, down 640 points or 1.30 percent.
Midcap and smallcap stocks outperformed largecaps during Wednesday's session.
The Nifty Midcap 100 index closed at 52,125 points, down 169 points or 0.32 per cent. However, the Nifty Smallcap 100 index closed at 16,886 points, up 10 points or 0.0 percent.
Sector-wise, pharma and metal stocks were the major gainers, while Auto, IT, PS Bank, FMCG and realty were the major losers.
India Volatility Index (India VIX) closed at 24.17 points on the day as 2 out of 30 Sensex stocks closed in the red.
Tech Mahindra, ICICI Bank, Bajaj Finserv, HDFC Bank, UltraTech Cement and Axi Bank were the top losers on Wednesday, while Power Grid, Sun Pharma, Nestle, ITC, IndusInd Bank were the top gainers.
Rupak Dey, Senior Technical Analyst, LKP Securities, said: “Bank Nift index has demonstrated a clear change in sentiment by opening below the support level of 49,000 and trading below it. It closed near its 21-day EMA at 48,400. If Bank Nifty fails to sustain above 21-day EMA, further selling pressure could take it down to 48,000."
"As a result, 48,400 now acts as a support level for Bank Nifty, while 49,000 acts as a new resistance level," Dey said.
Banking index Nifty Bank also declined by more than 1 percent and closed at 48,501, down 640 points or 1.30 percent.
Midcap and smallcap stocks outperformed largecaps during Wednesday's session.
The Nifty Midcap 100 index closed at 52,125 points, down 169 points or 0.32 per cent. However, the Nifty Smallcap 100 index closed at 16,886 points, up 10 points or 0.0 percent.
Sector-wise, pharma and metal stocks were the major gainers, while Auto, IT, PS Bank, FMCG and realty were the major losers.
India Volatility Index (India VIX) closed at 24.17 points on the day as 2 out of 30 Sensex stocks closed in the red.
Tech Mahindra, ICICI Bank, Bajaj Finserv, HDFC Bank, UltraTech Cement and Axi Bank were the top losers on Wednesday, while Power Grid, Sun Pharma, Nestle, ITC, IndusInd Bank were the top gainers.
Rupak Dey, Senior Technical Analyst, LKP Securities, said: “Bank Nift index has demonstrated a clear change in sentiment by opening below the support level of 49,000 and trading below it. It closed near its 21-day EMA at 48,400. If Bank Nifty fails to sustain above 21-day EMA, further selling pressure could take it down to 48,000."
"As a result, 48,400 now acts as a support level for Bank Nifty, while 49,000 acts as a new resistance level," Dey said.
