The BSE Sensex closed 1.54 percent lower, after a firm start on Wednesday, with banks and index heavyweight Reliance Industries (RELI.NS) leading the losses.

State Bank of India (SBI.NS), the country's top lender, closed 8.05 percent lower, and ICICI Bank (ICBK.NS) closed 3.39 percent down.

The main 30-share benchmark index fell 283.36 points to 18,145.25, with 24 of its components in the red.

The broader 50-share NSE index ended 101.80 points lower at 5,505.35 points.