Equity benchmarks remained on the backfoot for the second session running on Thursday, reflecting the anxiety in global markets following the US Fed's previous meeting revealing discussions around tapering its asset purchase programme.

In the wake of contacting the 50,000-mark in opening exchange, the 30-share BSE Sensex was pulled lower by selling in banking and energy counters. It ultimately finished at 49,564.86, down 337.78 focuses or 0.68 per cent.

On similar lines, the broader NSE Nifty surrendered the 15,000-level to close 124.10 points or 0.83 per cent lower at 14,906.05.

ONGC was the top loser among the Sensex constituents, tumbling 2.70 per cent, trailed by Sun Pharma, PowerGrid, Axis Bank, HDFC Bank, Bharti Airtel, Kotak Bank and Nestle India.

On the other hand, M&M, IndusInd Bank, Titan, L&T, Bajaj Finserv and Infosys were among the gainers, scaling to 2.47 percent.

"Domestic market witnessed selling due to lack of further domestic cues and weak global market. Wall Street has extended its losses as US treasury yield and dollar index jumped post the release of a watchful Fed minutes, which was below the expectations.

"Fed minutes signalled a plausible slowdown in bond buying 'at some point', a shift in policy in the future, which will have an implication on emerging markets," said Vinod Nair, Head of Research at Geojit Financial Services.

Meanwhile, with 2,76,110 new coronavirus infections being reported in a day, and India's total tally of Covid-19 cases climbing to 2,57,72,440, while the daily deaths were recorded below 4,000 after four days, taking the toll to 2,87,122, according to the Union Health Ministry data updated on Thursday, Binod Modi, Head - Strategy at Reliance Securities, said the noticeable decrease in day-by-day Covid-19 cases in India has offered solace to financial backers.

“However, minutes of FOMC meeting indicates diversions among members' view about higher inflation and accommodative stance and ECB’s warning toward potential bubble in financial assets do not bode well for global equities, including India.

"This raises concerns about possible taper tantrum in early 2022, which is also expected to weigh on investors' sentiments in coming week and can be a headwind for market...," he added.

Metal stocks saw hefty selling pressure after China's transition to check item costs in the country, he called attention to.

Sector-wise, BSE metal, oil and gas, bank-ex, utilities and energy records fell up to 3.62 per cent, while realty, capital goods and consumer durables finished with gains.

Broader BSE midcap file finished in the red, while the small-cap measure rose 0.22 percent.

The rupee reinforced by 6 paise to end at 73.12 against the US dollar, following the shortcoming in the American currency in the global market.

"The Indian Rupee appreciated marginally against the greenback supported by dollar inflows and weaker dollar. However, gains were capped on importer hedging and the Federal Reserve’s bond taper worries weighed on risk appetite," said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Seoul ended in the red, while Nikkei was in positive terrain.

Equities in Europe were largely trading with gains in mid-session deals.