Reuters Market Eye - The BSE Sensex is down 0.48 percent, while Nifty falls 0.43 percent. The Nifty is trading close to its 200 day moving average after breaching it intraday in the previous session.
Overseas investors sold Indian shares worth $196.3 million on Tuesday, provisional exchange data shows adding to their sale of $656.2 million over the previous seven sessions since January 23.
Blue-chip shares fall on continued emerging market-led risk aversion.
ITC is down 1.5 percent, while Reliance Industries falls 0.8 percent.
However, Tech Mahindra gains 3.1 percent after its December-quarter profit rose more than three-fold to beat analysts estimates.
(Reporting by Abhishek Vishnoi)