Late morning, the 30-share index was trading at 35,292.30, showing a loss of 95.58 points, or 0.27 per cent.
Meanwhile, the rupee recovered from the opening level of 68.14 and was trading at 67.86 against the USA dollar on a likely intervention from the RBI in early trade.
Presently, the BSE is the 11th biggest stock exchange in the world with a total market capitalization of $1.70 trillion as of January 23, 2015. About two shares fell for every share rising on the NSE. Weak Asian markets also contributed to negative sentiment. The Indian rupee too followed the stock market and fell below the 68 mark for the first time since January 2017, closing at 68.07 level.
Even the broadly subdued Asian indices and the disappointing macro-economic inflation data points released on Monday dented investor sentiments.
The Punjab National Bank extended Tuesday's losses, and was down about 12 percent, after it reported a net loss of Rs.13, 416.91 crores for the fourth quarter of the fiscal year ending March 31, 2018.
Punjab National Bank on Tuesday had reported a record quarterly loss of 134.17 billion rupees ($1.98 billion) with analysts anxious about the bank's growth prospects, while Syndicate Bank posted a loss of 21.95 billion rupees compared with a profit of 1.04 billion rupees previous year.
FMCG index rallied 1.8 percent, backed by ITC that gained 1.4 percent after March quarter earnings and HUL that rose almost 4 percent.
Shares that lost the most include Hero MotoCorp, ICICI Bank, SBI, Adani Ports, RIL, ONGC, Axis Bank, Bajaj Auto, M&M, Coal India, IndusInd Bank, NTPC and Bharti Airtel, falling by up to 3.27 per cent.
Indiabulls Real Estate share price gained 12 percent as board will consider share buyback proposal on May 18.
On the global front, the oil prices were off the 3-1/2-year highs on ample supplies despite ongoing output cuts by producer cartel OPEC and looming United States sanctions against major crude exporter Iran.
Asian stock markets dipped on Wednesday after Pyongyang abruptly called off talks with Seoul, throwing a U.S. Brent crude futures were at Dollars 78.01 per barrel, down 0.41 percent from their last close.