The upcoming July derivatives expiry later in the week would also add some volatility to the market proceedings.
The Indian indices also offer one of the lowest dividend yields.
Sensex, Nifty have lost about 6%, against 0.5-5% decline in other key Asian indices.
Sensex seems to be under pressure on weak cues.
Investors accumulated quality stocks at valuable and attractive levels.
Among the private banking majors ICICI Bank and HDFC Bank were down 0.2%-0.5% each.
Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
RIL, HDFC twins, M&M, Infosys among the top losers for the day.
Infosys, Tata Motors, ONGC, TCS and GAIL are the top 5 losers.
The India Meteorological Department on Tuesday said the monsoon this year is expected to be 'above normal.'
Banks led the decline with Nifty Bank and BSE Bank index dropping over 3% each.
The Sensex ended lower on unfavourable cues.
Tata Motors, ONGC, HDFC and TCS were the top gainers.
Indices reversed all its losses during late trades.
The 30-share Sensex lost 54 points at end at 27,086 and 50-share Nifty shed 19 points to close at 8,096.
The Sensex ended above 27,000 for the first time while the Nifty topped 8,100.
The benchmark Nifty rallied 1,000 points or 17% from 7,000 in 78 trading sessions since May 12, till date to surpass the 8,000 mark.
The 30-share Sensex ended up 12 points at 28,517 while the 50-share Nifty ended nearly unchanged at 8,660.
The rally in index heavyweight ITC has boosted the sentiment across the board.
Rate-sensitive sectors like banks, realty and auto witnessed heavy selling pressure ahead of the RBI Monetary policy which is scheduled on September 29.
ICICI Bank, SBI, Axis Bank and HDFC Bank dipped between 1-2% each.
Bank shares were the top gainer in early trades with Bank of Baroda up over 4%.
The derivatives expiry on Thursday is also expected to add to the volatility.
Financials are the top gainers along with index heavyweights.
Opinion polls have suggested that while big business is broadly in favour of staying in the EU, small firms have been evenly split in what looks like a photo-finish.
Weakness in Infosys, L&T and Hindalco cap index gains.
Markets snapped two-day losing streak and ended flat with a positive bias on Tuesday as gains in auto shares helped offset losses in IT majors.
Broad-based buying aided sentiment and the market registers record turnover at Rs 6.86 lakh crore
The 30-share Sensex ended down 159 points at 27,425 and the 50-share Nifty closed down 24 points at 8,299.
The 30-share Sensex and the 50-share Nifty ended flat at the mark of 27,403 and 8,248 respectively.
The banking, oil and metal sectors were the top sectoral losers on the BSE, while IT stocks rendered support at lower levels.
The Indian Institute of Science, Bangalore and Indian Institute of Technology, Bombay were ranked among the Top 40 as per Times Higher Education BRICS and Emerging Economies Rankings 2015.
Capital goods, IT, auto and pharmaceuticals lead gains for the financial year
BHEL down around 2.4% and Bharti Airtel down around 1.6% were other major losers.
Markets rebound with financials leading the gains on hopes of a peaceful solution to the turmoil in Ukraine
The Indian rupee also trimmed most of its early gains and was trading at Rs 61.28 compared to its Wednesday's close of Rs 61.31 to the US dollar.
A leave vote means the future of Britain's financial services industry is now hanging in the balance.
Markets end in green with auto, banks on a steady climb.
Markets across the globe are rallying on hopes that the US Federal Reserve won't lift interest rates until 2016.
