Consequently, the key indices traded on a flat note during the mid-afternoon session, as heavy selling pressure was witnessed in automobile and consumer durables stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched down by 2.65 points or 0.03 per cent to 8,518.40 points.
On the other hand, the barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,912.14 points, traded at 27,828.60 points (at 2.15 p.m.) — up 20.46 points or 0.07 per cent from the previous close at 27,808.14 points.
The Sensex has so far touched a high of 27,928.76 points and a low of 27,752.14 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bears — with 1,711 declines and 925 advances.
Both indices had ended in the positive territory during the previous trade session on Tuesday to reach their new 11-months closing high levels.
The barometer index edged up by 181.45 points or 0.66 per cent to 27,808.14 points, while the Nifty gained by 53.15 points or 0.63 per cent to 8,521.05 points.
Initially on Wednesday, the benchmark indices opened on a higher note, in-sync with their Asian peers.
However, equity markets soon ceded their initial gains, as profit booking hampered the upward trajectory.
Besides, lower crude oil prices, weak rupee and disappointing inflation figures for June eroded investors’ confidence.
Nevertheless, healthy progress of monsoon season, expectations of robust quarterly results, recapitalisation of state-run banks supported prices at the lower levels.
“Profit booking ahead of key event risks and disappointing inflation figures dragged the Indian equity markets lower,” Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.
“However, good progress of monsoon season, expectations of healthy quarterly results, more economic reforms supported prices at the lower levels.”
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, Nifty traded on a flat note due to profit booking at higher levels.
“Banking and pharma sector stocks traded with mix sentiments on profit booking,” Desai noted.