Investor wealth eroded by over 1 trillion on Thursday as equities came under pressure after registering gains in the past two days.

The 30-share BSE Sensex opened lower and remained in the negative territory throughout the trading session.

The benchmark finally closed at 38,979.85, lower by 323 points or 0.82%.

At close of trade, the market capitalisation of BSE-listed companies tumbled 1,03,247.77 crore to 1,59,04,784.95 crore.

"Markets surrendered yesterday's gains and settled closer to the day's low following weak global cues. The US Fed in its policy meet raised concern over economic recovery which triggered a weak start in our market," Religare Broking Ltd VP - Research Ajit Mishra said.

"Though the benchmark tried to recover multiple times during the day, profit-taking on every rise not only capped the upside but also pushed the index lower," he added.

Bajaj Finserv was the top laggard in the Sensex pack, falling 2.23%, followed by PowerGrid, L&T, TCS and ICICI Bank, while HCL Tech, Infosys and Maruti were among the five gainers.

"Sentiments got a hit after the US Fed highlighted uncertainty surrounding economic recovery," Sumeet Bagadia, Executive Director, Choice Broking said.

In the broader market, the BSE mid-cap and small-cap indices fell up to 0.53%.

Among BSE indices, realty, metal, bankex, capital goods and finance dropped as much as 1.87%, while healthcare, IT and tech closed with gains.

On the BSE, 1,612 companies declined, while 1,125 advanced and 159 remained unchanged.