After a holiday, equity benchmarks opened higher on Wednesday, with the Sensex crossing 30,000-mark but failed to sustain that level as investors turned cautious ahead of Monetary Policy Committee meet later today.
Majority of economists expect unchanged in rates from the Reserve Bank of India but the commentary will be closely watched, especially after the RBI, in last meet, changed its stance from accommodative to neutral.
The 30-share BSE Sensex was down 79.75 points at 29,830.47 and the 50-share NSE Nifty fell 15.15 points to 9,222.70, dragged by HDFC, ITC, Infosys and ICICI Bank.
However, Reliance Industries continued to support the market, up nearly 2 percent on value buying.
The Indian rupee opened marginally lower at 65.07 per dollar against Monday's closing value of 65.02.
Bhaskar Panda of HDFC Bank feels the rupee is likely to remain rangebound today and stay between 64.90-65.10/dollar.
The dollar was flat but traded lower against the yen which rose to a one-week high. Caution prevails ahead of the US china meeting. Investors will be watching for any discussion on trade or currency manipulation.
Asian shares were in positive territory, amid concerns over North Korea's latest ballistic missile test which landed in the Sea of Japan.