Indian shares closed 1.28 percent lower on Wednesday in choppy trade ahead of the release of India's inflation data on Thursday which analysts expect will edge up further, dealers said. The benchmark 30-share Sensex index fell 185.43 points to 14,296.79, snapping three consecutive days of gains.
"Investors went short ahead of the inflation data and the monthly futures contract expiry on Thursday," said Bhaskar Kapadia, partner with brokerage Pyramid Securities. Official inflation data will be announced late Thursday. Last Thursday, India's inflation accelerated to a fresh 13-year peak of 12.63 percent, fuelling expectations of more monetary tightening.