Reuters Market Eye - The BSE Sensex falls 0.24 percent, while the broader Nifty is down 0.2 percent.
Most Asian shares slumped on Wednesday as the prospects of a reduction in the U.S. Federal Reserve's stimulus early next year prompted investors to cash in gains from their recent rallies.
Among blue chip shares, ICICI Bank falls 1.4 percent while Larsen and Toubro is down 0.9 percent.
Caution also prevails ahead of the state election results to be announced on Sunday and U.S. monthly employment data, due out on Friday, which could help provide additional clues about potential Fed tapering.
(Reporting by Abhishek Vishnoi)