However, crude oil's fall to one-year low in the global market on excess supply concerns, capped the fall in the indices. The 30-share, after rising briefly to 35,494.25 at the outset, quickly slipped into the negative terrain in line with a weak trend at other Asian markets and touched a low of 35,112.49.

The U-turn by FIIs can be attributed to rising bond yields in the US and weakening emerging market currencies among other factors.

The Indian market too welcomed the fall in international oil prices and opened marginally higher higher but quickly slipped into the red in line with its international counterparts.

US stocks sold off for a second day on Tuesday as energy shares dropped with oil prices, while retailers including Target and Kohl's sank after weak earnings and forecasts, fuelling worries about economic growth. The Nasdaq closed at its lowest in more than seven months on Tuesday while the S&P 500 and Dow ended at their weakest since late October.

The issue will open early next week and investors would get 3.5-4 per cent discount over the issue price. The government is aiming to mop up Rs 8,000 crore, with a green-shoe option to retain either Rs 4,000 crore or Rs 6,000 crore from the fourth tranche of CPSE ETF.

YES Bank (6.10%), Tata Steel (3.21%) and Vedanta (2.89%) were the top Sensex losers. Of 30 Sensex stocks, 26 closed lower.

While the BSE bankex ended 231.40 points or 0.78% lower at 29,372 level, bank Nifty fell 187 points to 26,113 points. 

The fund house believes that these are interesting times for Indian healthcare sector despite disappointing earnings in FY18. The sector has the potential to get re-rated after temporary disruptions get resolved