The Indian market failed to hold on to any gains as rising crude prices weighed on investor sentiment. Oil marketing companies saw a steep fall, with all three companies (IOC, HPCL and BPCL) falling 4-8%.
Other major contributors to the Index fall were heavyweights like Reliance, ITC, and HDFC Bank.
Vedanta also had a rough day today on the back of violence at the Sterlite unit in Tamil Nadu. The company's stock closed with a fall of 7% after Madras High Court ordered stay on the expansion of Tuticorin unit.
Support came from the banking space, with SBI & ICICI Bank being top Index gainers. The benchmark indices, Sensex slipped 306 points to 34,345 and Nifty fell 106 points to 10,430. Broader markets had a better performance relatively.
The nifty Midcap index closed 112 points lower at 18,507 and the Nifty Bank Index slipping 93 points to 25,685.
It was a mixed day on the earnings front. The auto ancillary major, Motherson Sumi closed with a fall of 4.5% after earnings for the Q4 came in below expectations. Profit was at Rs 518.4 crore against estimates of Rs 557 crore and the margin came in 30 basis points lower against the estimate.
From the small cap space, GVK Power was a highlight amongst reported earnings. The Company saw a profit of Rs 23.1 crore against the loss of Rs 206 crore in the corresponding quarter. It led to 10% gain in the stock.
In the futures market, Nifty 10,500 Call and 10,400 Put options were in focus amidst major fall in market. 10,500 Call saw an addition of 18 lakh shares and 10,400 Put added 10 lakh shares in the open interest. All major support levels for Nifty, have been broken, with the Nifty in spot market closing below 50-DMA of 10,465.70. Nifty May Futures closed with discount of 11 points against premium of 16 points on Tuesday.
On the global front, Asian stocks closed lower on Wednesday after U.S. President Donald Trump said he was "not satisfied" with the latest round of trade talks with China.
In Tokyo, the Nikkei 225 fell 1.2% to close at 22,689.74. Major exporters were hurt as the yen firmed, with Honda Motor declining 1.03% and TDK falling 1.96%.
The broader Topix was lower by 0.68%, with losses seen in all but two of its 33 sub-indexes. Declines were led by the Topix mining and oil sub-indexes, which dropped 4.3% & 3.07% respectively. The Kospi recovered from early losses to edge up 0.26% to 2,472 as gains in large cap technology names offset declines seen in other major sectors. Samsung Electronics rose 3.6% & SK Hynix added 6.96%, while steelmakers and financials slid.The Shanghai composite dropped 1.4% to close at 3,169.24, its largest single-day fall in around a month. The smaller Shenzhen composite slid 1.1% to end at 1,835.