The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 23,620 level, a discount of nearly 38 points from the Nifty futures’ previous close.

The S P BSE Sensex ended 984.23 points lower at 77,690.95 at the closing bell, while the NSE Nifty50 fell 324.40 points to settle at 23,559.05.

India's benchmark Nifty 50 threatened to end in correction territory on Wednesday amid a market slide as a spike in inflation dampened hopes of a rate cut next month, adding to concerns over dull earnings and sustained foreign outflows.

The NSE Nifty 50 fell 1.1 per cent to a session-low of 23,616.40 points, which is 10 per cent below the record high it hit on September 27. If it ends the day at that level, it will signal a technical correction.

India’s benchmark NSE Nifty 50 Index entered a so-called correction amid persistent selling by foreign investors and a weak results season that’s led to earnings downgrades.