Today's stock market: The Sensex and the Nifty 50 closed in the red for the second straight session on Wednesday, January 3, as escalating geopolitical tensions pushed investors to sell high-valued stocks.

Rising global tensions are weighing on market sentiment as expectations for rate reduction fade. Significant market upswings in the last two months have raised market valuations. With the market's most favorable variables already factored in, investors are reaping profits at record levels.

Global cues were mixed, putting more strain on market sentiment. Investors were cautious as they awaited the release of minutes from the US Federal Reserve's December meeting.

The Sensex opened at 71,832.62 against the previous close of 71,892.48 and reached intraday highs of 71,862 and 71,303.97. The 30-share pack finished the day down 536 points, or 0.75 percent, at 71,356.60.

The Nifty 50 began at 21,661.10, down 148 points, or 0.69 percent, from the previous close of 21,665.80. It reached intraday highs and lows of 21,677 and 21,500.35, respectively, before finishing at 21,517.35, down 148 points, or 0.69 percent.

Midcap and smallcap indexes, on the other hand, outperformed the benchmark indices.

The BSE Midcap index finished 0.20 percent higher at 37,081.58 and the BSE Smallcap index finished 0.30 percent higher at 43,103.61.

ALSO READ: Financial and IT Sectors Drive Sensex, Nifty Downward Amidst Selling Pressure