The BSE benchmark Sensex shed almost 137 points on Wednesday with Reliance Industries and L&T the worst-hit scrips in the 30-share pack.
     
Amid weak global cues, the 30-share barometer of the Bombay Stock Exchange lost 136.55 points, or 0.67 per cent, to close at 20,203.34.
     
During the session, the index fell by 232 points to an intra-day low of 20,107.25. However, buying in blue chips like TCS, Tata Motors and ICICI Bank towards the end of trade helped the 30-share index pare its losses.
     
In a similar fashion, the wide-based 50-share Nifty index of the National Stock Exchange 0.73 per cent lower at 6,090.90 on Wednesday.
     
"The market reacted to the IIP data. The Indian market has risen fairly in recent times and any such negative trigger gives a reason for correction," India Infoline President (Broking) Nandip Vaidya said.
     
India's industrial output growth rate nearly halved to a 15-month low of 5.6 per cent in August from 10.6 per cent a year ago.
     
"Industrial production growth at 5.6 per cent in August has been much below the market expectations. The capital goods surprised again, this time on the downside, showing mild contraction," Edelweiss Securities Executive Vice President & Head of Institutional Equities Vikas Khemani said.
     
Stock faring

Reliance Industries, which holds the maximum weight in the Sensex, lost 1.41 per cent to settle at Rs 1,053.90, while L&T sank nearly by 2 per cent on the BSE on Wednesday.
     
Except IT, pharma and technology, all the other sectoral indices on the BSE ended in the red, with realty, consumer goods and metal suffering the most.
     
DLF plunged by 2 per cent and was the biggest loser in the Sensex pack.
     
Metal was another sector that saw brisk selling pressure. Hindalco declined by 2.05 per cent, Jindal Steel by 1.97 per cent, Tata Steel by 1 per cent and Sterlite by 0.25 per cent.
     
In the BSE-30 pack, 22 stocks ended with losses, while eight scrips managed to buck the trend and closed in positive terrain.

The other major losers of the day were Jaiprakash Associates (down 1.93 per cent), R-Infra (down 1.68 per cent), ACC (down 1.68 per cent) and ITC (down 0.87 per cent).
     
Some selling pressure was also seen in the banking space, with HDFC losing 1.80 per cent and SBI 0.84 per cent.
     
However, some frontline auto stocks managed to buck the trend and cushion the losses in the broader market to some extent.
     
M&M jumped 1.31 per cent, the most in the Sensex pack, while Tata Motors was up 0.61 per cent. Hero Honda gained 0.17 per cent.
     
Among the other gainers, telecom major RCom advanced 1.06 per cent, while software exporter Infosys rose by 0.12 per cent and TCS 0.89 per cent. ICICI Bank ended 0.65 per cent higher.
     
Other markets

The investor sentiment overseas was not positive and most key indices were in the negative zone.
     
Most Asian stocks were down after commodity companies took a hit on account of lower oil and metal prices. Japanese auto-makers also declined over concerns that the strong yen will hurt earnings. Japan's benchmark Nikkei Index fell by 2 per cent today.
     
European markets were also quoting in the red during the afternoon session.