Mumbai:  Erasing initial gains, the BSE index Sensex fell for the third day on Wednesday losing 28 points on concerns over the government's ability to push through reforms and weak global cues.
After a volatile trade, the 30-share barometer closed lower by 27.77 points, or 0.16 percent, to 17,145.52 points. The benchmark index had lost 464 points in the last two trading sessions.
The gauge touched a high of 17,239.35 points and also fell to the day's low of 17,008.77 points as foreign funds remained on the sidelines on reform concerns, brokers said.
The broad-based National Stock Exchange index Nifty fell by 1.95 points to 5,220.45, after moving between 5,243.85 and 5,171.45.
Market major Reliance Industries fell by further by 1.94 percent to Rs 761.35 followed by a loss of 2.68 percent on Tuesday, pulling the Sensex down.
Brokers said the falling trend was partly checked on higher opening in European stocks and a gain in the second most heaviest on the Sensex Infosys, which closed up 1.07 percent at Rs 2,879.60.
They said every rise in the market was encashed by speculators amid investors and major market players looking to the upcoming budget on March 16.
The current down-fall was led by metal, refinery, power and capital goods stocks with losses up to 1.51 percent.
Among the major losers, NTPC fell by 2.41 percent to Rs 170.15, Sterlite Industries by 3.95 percent to Rs 109.35 and Bharti Airtel by 1.91 percent to Rs 329.55.
BHEL declined by 1.85 percent to Rs 270.90, Jindal Steel by 1.78 percent to Rs 536.25, Maruti Suzuki by 1.48 percent to Rs 1,309.10 and ONGC by 1.01 percent to Rs 278.75.