The 30-share index opened on a strong note at 36,191.87, but failed to hold on its gains and settled 96.66 points, or 0.27 per cent, lower at 36,009.84. Intra-day, the gauge swung between 36,214.26 and 35,840.60.

The Market breadth, indicating the overall strength of the market, was negative as 1,352 shares advanced, against a decline of 1,379 shares, while 200 shares remained unchanged.

While the Sensex opened 276 points higher at 35,971, the Nifty gained 77 points to 10,804 in early trade. Of 30 Sensex stocks, 28 were trading in the green.

While the Sensex rose 117 points to 35630, Nifty gained 50 points to 10,721. Of 30 Sensex stocks, 27 were trading in the green

In line with benchmark indices the broader markets also settled in red, with mid cap and small cap indices falling as much as 1.03 per cent and 0.58 per cent, respectively.

At 9:25 hours, the BSE Sensex was trading 67.22 points lower at 35,824.30, and the NSE Nifty was at 10,755.60, down by 36.9 points.

Shares of public sector banks will remain in focus after the cabinet on Wednesday approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda. The new entity will be operational from April 01.

Of 30 Sensex stocks, 24 were trading in the red. TCS (1.08%), Sun Pharma (0.72%), Infosys (0.68%) and ICICI Bank (0.36%) were the top Sensex gainers.

The HUL stock rose up to Rs 1.15% to Rs 1,811.90 against the previous close of 1791.15  on the BSE. The stock has gained 32.85% during the last one year and risen 31.53% since the beginning of this year.

The plant, which will be part of the company's newly-acquired Electrosteel Steels Ltd (ESL), would create 1,20,000 jobs in the form of direct and indirect employment.