Reuters Market Eye - The BSE Sensex and Nifty fall 1.4 percent each on waning risk appetite due to the Iraq conflict. Brent crude held above $113 per barrel on Wednesday as heavy fighting in Iraq shut the country's biggest refinery and led to the withdrawal of staff by foreign oil firms, stoking worries about exports from the key oil producer.
Among blue-chips, Tata Consultancy Services falls 1.9 percent while ICICI Bank loses 2.4 percent.
Reliance Industries falls 2 percent after the company did not announce any specific plans for its telecom unit Reliance Jio Infocomm, investors say.
Also, a surprisingly high reading for U.S. inflation threatened to give a hawkish tilt to the Federal Reserve's policy outlook later in the session.
(Reporting by Abhishek Vishnoi)