Consequently, both the key indices traded in the negative territory during the mid-afernoon trade session as heavy selling pressure was witnessed in automobile, capital goods and fast moving consumer goods (FMCG) stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged down 60.15 points or 0.70 per cent to 8,562.75 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,008.52 points, traded at 27,755.21 points (at 1.45 p.m.) -- down 226.50 points or 0.81 per cent from the previous close at 27,981.71 points.
The Sensex has so far touched a high of 28,015.43 points and a low of 27,690.06 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bears -- with 1,729 declines and 825 advances.
Both the indices had ended marginally in the red during the previous trade session on Tuesday, prompted by negative global cues and profit booking.
The barometer index fell by 21.41 points or 0.08 per cent to 27,981.71 points, while the NSE Nifty edged lower by 13.65 points or 0.16 per cent to 8,622.90 points.
Initially on Wednesday, the benchmark indices opened on a negative note as investors traded with caution on expectations of approval of the GST bill in the Rajya Sabha later in the day.
Investors are hopeful about the bill's passage after the union cabinet last week approved key changes in the proposed legislation.
The amendments in the bill, scheduled to be moved by Finance Minister Arun Jaitley in the Rajya Sabha, are expected to sail through with the government scrapping the additional levy of one per cent proposed earlier.
Technically called the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, it has proposed to delete Clause 18 of the original bill that intended to compensate the manufacturing states with one per cent additional duty for a period of two years or more for revenue losses.
The pan-India tax reform has been passed by the Lok Sabha but is stuck in the Rajya Sabha, where the government lacks a majority.
"Uncertainity of the GST bill will continue to prevail in the markets until a decision is taken by the Rajya Sabha today," Manish Hathiramani, Proprietary Trader and Technical Analyst at Deen Dayal Investments, told IANS.
"Due to this uncertainity, there is a severe bout of profit taking that can be seen in the markets," he added.
"However, bullish spirits continue to maintain in the markets. It's only if the 8,500 spot Nifty were to break, the markets may face some short-term bearishness."
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