Federal Reserve chairman Alan Greenspan's announcement to maintain status quo on the interest front inspite of slowing down in economy disappointed the US market players and had it's negative impact on Nasdaq, which lost another 113 points on Tuesday night. This had a cascading effect on the domestic bourses. New economy stocks witnessed heavy selling pressure from institutional players while old economy counters like FMCG and cement stocks attracted profit booking from operators. However, as majority of the buying interest shifted from mainstream counters, some side market stocks displayed marginal gains.

Sensex opened sharply lower at 4106.34 and reached the intra-day high of 4121.82 before the mid-session but sustained selling pressure pulled it down to day's lowest level of 4057.95 points before closing at 4086.41 points as compared to the previous close of 4152.94 points, a loss of 66.53 points.

The interesting point of the Sensex movement on Wednesday, as pointed out by dealers, was that it could never come closer to the previous closing level, which indicates the severity of the selling pressure. S&P CNX Nifty also lost 15.25 points and closed the day at 1295.25 points as compared to the previous close of 1310.50 points.