Reuters Market Eye - The BSE Sensex and the broader Nifty are down more than 1 percent with oil and gas explorers leading the losses.
ONGC slides nealry 6 percent and RIL falls 3.9 percent after the government on Wednesday deferred a decision to hike prices of locally produced gas.
However, losses are limited as auto stocks gai after Finance Minister Arun Jaitley said India had extended excise duty concessions for automobiles, among other sectors.
Investors are cautious ahead of the monthly derivatives contracts expiry for June, on Thursday.
Overseas investors bought shares worth of 6.95 billion rupees ($116.4 million) on Wednesday, provisional exchange data showed.
Asian shares swung higher on Thursday as weak U.S. growth seemed to further delay the day when interest rates might rise, pulling down bond yields globally and pushing investors toward riskier assets in desperate search for returns.
(Reporting by Indulal PM)
