Erasing initial gains, the BSE index Sensex fell for the third day today losing 28 points on concerns over the government's ability to push through reforms and weak global cues.
After a volatile trade, the 30-share barometer closed lower by 27.77 points, or 0.16%, to 17,145.52 points. The benchmark index had lost 464 points in the last two trading sessions.
The gauge touched a high of 17,239.35 points and also fell to the day's low of 17,008.77 points as foreign funds remained on the sidelines on reform concerns, brokers said.
The broad-based National Stock Exchange index Nifty fell by 1.95 points to 5,220.45, after moving between 5,243.85 and 5,171.45.
Market major Reliance Industries fell by further by 1.94% to Rs 761.35 followed by a loss of 2.68% on Tuesday, pulling the Sensex down.
Brokers said the falling trend was partly checked on higher opening in European stocks and a gain in the second most heaviest on the Sensex Infosys, which closed up 1.07% at Rs 2,879.60.
They said every rise in the market was encashed by speculators amid investors and major market players looking to the upcoming budget on March 16.
The current down-fall was led by metal, refinery, power and capital goods stocks with losses up to 1.51%.
Among the major losers, NTPC fell by 2.41% to Rs 170.15, Sterlite Industries by 3.95% to Rs 109.35 and Bharti Airtel by 1.91% to Rs 329.55.
BHEL declined by 1.85% to Rs 270.90, Jindal Steel by 1.78% to Rs 536.25, Maruti Suzuki by 1.48% to Rs 1,309.10 and ONGC by 1.01% to Rs 278.75.