Mumbai,  Weak global cues along with a rise in crude oil prices as well as outflow of foreign funds subdued India's key equity indices -- S&P BSE Sensex and NSE Nifty50 -- during the late-afternoon trade session on Wednesday.

Besides, profit-booking after a healthy rise in heavyweights and a run-up in mid and small-cap stocks supported the downtrend. Initially, the domestic equity market opened lower.

Globally, almost all Asian and European markets were in the red amidst growing fears that Federal Reserve plans to fight surging inflation by ramping up interest rates faster than previously anticipated. On the domestic front, volumes on the NSE were a little higher than recent average.

Among sectors, stocks of Oil & Gas and Auto were the only ones in the green whereas Realty, Banks, Telecom and IT indices lead the losses.

Consequently, at 2.30 p.m., the S&P BSE Sensex traded at 60,043.03 points, down by 711.83 points or 1.17 per cent from its previous close. Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) fell to 17,915.30 points, down 197.75 points or 1.09 per cent from its previous close.

"Rising Crude oil prices and resumption of selling pressure by FPIs are also playing a role in the weakness in Indian markets," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Traders are opting to take profits ahead of the Union Budget on February 1 and the US Fed meet outcome on January 26."

According to Gaurav Garg Head of Research CapitalVia Global Research: "Investors were also concerned by a WHO official's statement that Covid-19 might not end this year."

"Crude oil prices are at high, bond yield at 1.90 that is a reason traders are booking profit."