Equity benchmarks extended losses for the sixth consecutive session on Wednesday, dragged by technology, FMCG and select banks stocks. The market started off trade on a positive note following Asian peers but erased gains in late trade on weak European cues. Investors will closely watch tomorrow’s GST meeting.The 30-share BSE Sensex was down 65.60 points at 26242.38 and the 50-share NSE Nifty slipped 21.10 points to 8061.30, the lowest closing level since November 24. Benchmark indices underperformed broader markets. The market breadth was negative as about 1410 shares declined against 1169 advancing shares on the BSE.

Experts say consolidation with a negative bias may continue in near term but the consistent fall in market might be indicated that investors are concerned about the demonetisation and its short term and long term impact on the economy.

They don’t expect any direction to the market from Q3 earnings, which is likely to get impacted due to demonetisation. Budget is the only next trigger, they say.

“Outside observers are surprised at the move (demonetisation) because normally this kind of a step is undertaken when a country is in severe crisis like a financial one or inflation,” Ruchir Sharma of Morgan Stanley says.

He says most business people that he has met in India are talking about a 30 percent impact due to demonetisation and are downgrading earnings for FY17. So, it would be tough to see high earnings growth in FY18 too with so many economic disruptions, Sharma feels.

Vinod Nair of Geojit BNP Paribas says RBI minutes (due later today) will throw some light on the surprising status quo decision and the market will also get an essence of any possibility of deep cuts in the near-term.

Markets would now look forward to tomorrow’s GST panel meet for signs of emerging consensus and the likelihood of further delays in rollout, Anand James Geojit BNP Paribas says.

FIIs were net sellers not only in equity but also in bond markets for the third consecutive month. They net sold more than Rs 1,700 crore worth of shares so far in December against Rs 17,737 crore in previous month while they offloaded exposure to debt worth more than Rs 20,000 crore against Rs 19,600 crore in November.

Meanwhile, the rupee rebounded today, up 12 paise to close at 67.91 against 68.03 a dollar in previous session.

IT and FMCG indices shed around a percent each.

Sun Pharma lost 10 percent in last six consecutive sessions, including today’s 2.25 percent loss.

ITC, TCS, Infosys, HDFC Bank, Tata Motors, L&T and Axis Bank were down 0.5-1.5 percent whereas ICICI Bank, Maruti Suzuki, Lupin, Mahindra & Mahindra, Reliance Industries, NTPC and ONGC gained 0.2-1.3 percent.

In the broader space, Anil Dhirubhai Ambani Group company Reliance Communications rallied nearly 7 percent after signing binding agreement with the US asset management company Brookfield to sell tower business.

Industrial gases maker Linde India gained 6 percent as its German-based parent company and US competitor Praxair decided to merge into new holding company.

Asian markets ended mixed, losing some of the optimism spurred from the Dow hitting a new record close overnight just shy of the psychological 20,000 level. European stocks were lower after as German authorities ramped up their search for the person behind Monday’s terrorist attack.