A rebound of the US dollar, Brexit deal impasse and the Reserve Bank of India's presence in the market weighed on investor sentiments, Reliance Securities said in a research note.
On the other hand, dollar inflows into local equities and strong Chinese yuan could keep depreciation bias limited, the note added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 90.99.
Traders said the US dollar rebounded against the basket of currencies amid lack of progress over the additional US fiscal stimulus to ease the economic blow from the COVID-19 pandemic.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 315.65 points lower at 45,787.85 and the broader NSE Nifty fell 109.10 points to 13,420.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 3,564.23 crore on a net basis on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.47 per cent to USD 49.09 per barrel.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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