Mumbai: The key Indian equity indices declined on Wednesday morning with the BSE Sensex losing over 400 points.
Heavy selling pressure was witnessed in banking, finance and oil and gas stocks.
Around 10.25 a.m., Sensex was trading at 48,717.15, lower by 444.66 points or 0.90 per cent from its previous close of 49,161.81.
It opened at 49,171.28 and has so far touched an intra-day high of 49,171.28 and a low of 48,712.42 points.
The Nifty50 on the National Stock Exchange was trading at 14,722.10, lower by 128.65 points or 0.87 per cent from its previous close.
Manish Hathiramani, technical analyst with Deen Dayal Investments said: "The Nifty is keeping above the 14,700 level. We will threaten the current uptrend if we close below 14,700."
"The situation would need to be reviewed then. Until then the trend continues to remain up and traders can strategically find ways to enter the market on dips. The markets can scale higher to 15,200-15,250," he said.
The top gainers on the Sensex so far were Power Grid, Larsen & Toubro and NTPC, while HDFC, Hindustan Unilever and IndusInd Bank were the major losers.
The Indian rupee slumped 17 paise to 73.51 against the US dollar in opening trade on Wednesday tracking weak domestic equities and strong American currency.
Forex traders said investors are awaiting cues from the US CPI and domestic inflation and IIP numbers. Besides, concerns over rising COVID-19 cases also weighed on sentiment.
At the interbank foreign exchange, the domestic unit opened lower at 73.51 against the dollar, registering a fall of 17 paise over its previous close.
On Tuesday, the rupee had closed at 73.34 against the US dollar.
"Most Asian currencies are trading weaker against the dollar and could weigh on sentiments," Reliance Securities said in a research note.
On the domestic equity market front, the 30-share BSE Sensex was trading 382.61 points or 0.78 per cent lower at 48,779.20. Similarly, the broader NSE Nifty slipped 106.70 points or 0.72 per cent to 14,744.05.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they pulled out Rs 336.00 crore on Tuesday, as per provisional data.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.27 per cent at 90.38 ahead of US CPI inflation later in the day.
"Higher inflation number might add pressure on the Fed to bring forward rate rises, but currency markets have been soothed by repeated promises of patience from Fed speakers," the Reliance Securities' note said.