Benchmark indices began the trade on a weak note on Thursday extending their previous day decline amid negative trend in global equity markets.

The 30-share BSE Sensex fell 420.95 points to 60,485.14 in early trade. Similarly, the broader NSE Nifty declined 123.65 points to 17,959.20.

Both the benchmark indices, however, later recovered most of their early lost ground. The Sensex quoted 81 points lower at 60,825.09 and the Nifty traded with a decline of 23.40 points to 18,059.45.

From the Sensex pack, Tech Mahindra, Wipro, Tata Consultancy Services, Infosys, Nestle and Power Grid were the major laggards.

Titan, Axis Bank, Bharti Airtel, ITC and Maruti were among the winners.

Elsewhere in Asia, markets in Seoul, Shanghai and Hong Kong were trading lower.

Wall Street had ended significantly lower on Wednesday.

"Going by the global cues, domestic equities are likely to see a downward trend in early trade on Thursday, after the US Federal Reserve overnight hiked interest rate on expected lines by 75 basis points but signalled that its tightening campaign is not over yet.

"However, investors can heave a sigh of relief after the Fed hinted at a slower pace of rate increase going ahead," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.

The BSE benchmark ended 215.26 points or 0.35 per cent lower at 60,906.09 on Wednesday. The Nifty fell 62.55 points or 0.34 per cent to settle at 18,082.85.

International oil benchmark Brent crude was trading 0.36 per cent lower at USD 95.81 per barrel.

Foreign Institutional Investors (FIIs) were net buyers on Wednesday as they bought shares worth Rs 1,436.30 crore, as per exchange data.