The Sensex is trading at 31,740.12 points down by 62.32 points or 0.19 per cent from its Tuesday's close at 32,802.44 points.
Broader markets rallied with BSE Midcap index adding 231 points or 1.38 per cent to end at 16,893.61 and Smallcap index closing at 18,031.24, up 1.29 per cent or 230 points.
The 30-share index was trading lower by 78.86 points or 0.24 per cent at 32,723.58 at 1045hrs.More news: Kim Kardashian Reignites Taylor Swift Feud with NSFW Pic & Fans Are MAD
Domestic institutional investors bought shares worth Rs 995.11 crore, while foreign funds sold shares to the tune of Rs 1,217.92 crore on Wednesday, provisional exchange data showed.
The index had lost 205 points on Wednesday after the Reserve Bank held the policy rate and raised the inflation forecast for the remainder of the financial year.
On the NSE, 1,273 shares advanced, 473 declined, while 60 remained unchanged.More news: Trump lawyer: Deutsche Bank has not received subpoena for Trump records
The rupee's weakness against the dollar too dampened the overall mood.
Defying the bullish spirit were index heavyweights such as TCS (down 0.52 per cent), Coal India (down 0.64 per cent), Cipla (down 0.50 per cent), Sun Pharma (down 0.26 per cent) and Wipro (down 0.34 per cent).
Among other Asian markets, Hong Kong's Hang Seng was down 0.39 per cent while Japan's Nikkei shed 0.42 per cent in early session today.More news: Northlake Mall lets special needs children meet Santa during closed hours