Later, the key heavy weight stocks on a weak note as a surge in crude oil prices spoiled the investor sentiments. IT stocks gained, extending their late rally on Tuesday when the rupee fell to it lowest in more than eight months against the dollar. Banking stocks witnessed selling pressure. US crude was steady at USD 121.79 a barrel, just off a record high at USD 122.73 in New York with prices doubling in the past year.
Foreign brokerage house Goldman Sachs, which had predicted that oil would hit USD 100 a barrel now forecasts a potential spike to USD 200 a barrel.
The current 30-share BSE Sensex was down 34.30 points or 0.20 per cent at 17,338.71 points. The index lost 106.82 points at day's low of 17,266.19, hit in early trade. Sensex gained 31.14 points at day's high of 17,404.15, hit at the onset of trading session.
The broader-based S&P CNX Nifty index of NSE was down 9.75 points or 0.19 per cent at 5,134.90 points from it last finish of 5,144.65.
However, it resumed firm at 5,156.70 later it recorded the day's high at 5,158.20 and a low at 5,110.80 points. The BSE Mid-Cap index rose 0.40 per cent to 7,258.92 and BSE Small-Cap index rose 0.45 per cent to 8,788.91.
The BSE IT index was up 1.77 per cent at 4,460.76. NIIT was up 2.93 per cent at Rs 112.30 followed by TCS by 2.92 per cent at Rs 965.20, Mphasis by 2.64 per cent at Rs 229, Satyam Computer by 1.80 per cent at Rs 506, Infosys Technologies by 1.63 per cent at Rs 1,850, HCL Technologies by 1.59 per cent at Rs 298 and Wipro by 1.47 per cent at Rs 505.80.
India's top listed cellular service provider by market share Bharti Airtel fell 3.02 per cent to Rs 820.55. The stock registered a volume of 6.90 lakh shares as against its average daily volume of 4.62 lakh shares on BSE in past one quarter. It was also the most active counter on BSE in terms of turnover. The stock clocked a turnover of Rs 27.29 crore on BSE.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.32 per cent at Rs 2644.
India's largest private sector bank by assets ICICI Bank fell 1.78 per cent to Rs 911.55.
India's largest engineering and construction firm by revenue Larsen&Toubro fell 0.56 per cent to Rs 3,044. Haldia Petrochemicals bought management control of power utility HPL Cogeneration from the former for Rs 180 crore.
Top Sensex gainers were, Hindustan Unilever was up 1.73 per cent at Rs 252.50, Tata Steel gained 1.42 per cent at Rs 827, Hindalco Industries moved up 1.07 per cent at Rs 183.30 and Grasim Industries rose by 0.59 per cent at Rs 2,371.
Top Sensex losers were, Bharat Heavy Electricals came down 2.71 per cent at Rs 1,810, Jaiprakash Associates eased 1.67 per cent at Rs 267.35, DLF eased by 1.86 per cent at Rs 655.50, and NTPC declined 1.38 per cent at Rs 193.20.
Asian markets were trading lower as Key indices in China, Hong Kong, Japan, Singapore and South Korea were down by 0.88 per cent to 2.11 per cent. However, Taiwan's Taiwan Weighted Index was up 0.97 per cent, brokers added.