The S&P BSE Sensex fell to a one-month closing low on Wednesday, falling for the third straight session, as gains in telecommunications stocks over spectrum auctions were offset by a sharp fall in Hindalco Industries Ltd over an investigation into the allocation of coal blocks.

The Sensex ended the session down by 50.7 points or 0.18 per cent at 28,659.17. Similarly, the broader NSE index ended 0.14 per cent lower at 8,699.95, marking its lowest close since February 26.

Broader sentiment remained weak, as Asian stocks skidded to a two-month low on continued worries about an earlier US interest rate hike, a prospect that sent the dollar to a 12-year high against the euro.

"Markets are in a mood to consolidate. Nifty is near the 8,700 support level. There are global concerns and any fall of 150 points in Nifty from the current level, will create fresh buying opportunity," said Deven Choksey, managing director, KR Choksey securities.

Among BSE sectoral indices, metal index fell the most by 1.64 per cent, followed by oil & gas 0.84 per cent, healthcare 0.82 per cent and capital goods 0.54 per cent. On the other hand, infrastructure index was the star-performer and was up 0.92 per cent, followed by realty 0.42 per cent, TECk 0.4 per cent and power 0.11 per cent.

Top five Sensex gainers were Bharti Airtel 5.97%, NTPC 2.63%, M&M 2.48%, GAIL 1.58% and HUL 1.34%, while the major losers were Hindalco 5.51%, SSLT 2.33%, Tata Steel 1.88%, Cipla 1.63% and Tata Motors 1.62%.

Telecommunications stocks such as Bharti Airtel gained after operators were seen as having successfully secured most of their spectrum needs at the ongoing auction of mobile airwaves.

However, Hindalco Industries fell as much as 5.5 percent to its lowest since May 5, 2014 after a court summoned billionaire Kumar Mangalam Birla, chairman of Aditya Birla Group to which Hindalco belongs, and former Prime Minister Manmohan Singh.

The summons were related to the allocation of coal blocks to Hindalco during the previous Congress government, which were later overturned by the Supreme Court. Hindalco declined to comment.

Metal stocks also fell on concerns over the impact of the investigations by the Central Bureau of Investigation. Tata Steel fell 1.88 per cent, while Sesa Sterlite was down 2.33 per cent.

Other laggards also include healthcare stocks as investors booked profits in recent outperformers such as Cipla Ltd , which fell 1.63 per cent. As of Tuesday, the stock had gained 16.5 per cent this year.

European shares rose in early trading on Wednesday, bouncing from the previous session's sell-off, with Adecco surging 3.6 per cent after its fourth-quarter profit beat expectations.

At 0830 GMT, the FTSEurofirst 300 index of top European shares was up 0.8 per cent at 1,565.39 points, after losing 1 per cent on Tuesday.

Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent after touching its lowest since January. Australian and South Korean shares each lost 0.5 per cent and Malaysian and Indonesian stocks also declined.

US stock index futures were slightly higher on Wednesday, implying a modest rebound from a sharp decline in the previous session, though questions remains about when the Federal Reserve would adjust its rate policies.

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