Indian shares snapped six-day rally on Friday, tracking weak Asian shares, after North Korea fired another missile over Japan into the Pacific Ocean.
U.S. stock futures and Asian shares dipped as North Korea's latest missile launch caused a mild flutter among investors.
Pyongyang's missile flew over Japan's northern Hokkaido, further escalating tensions following North Korea's test of its most powerful nuclear bomb yet.
The missile launch came just days after the United Nations Security Council imposed new sanctions against North Korea over the nuclear test on September 3.
At 0630 GMT, the S&P BSE Sensex fell 0.23 percent at 32,166 while the broader NSE Nifty lost 0.32 percent at 10,053.
Among the top index losers, Power Grid fell 2.1 percent, Sun Pharma declined 1.5 percent, Cipla lost 1 percent while Dr. Reddy's shed 1.7 percent.
The S&P BSE Bankex Index lost 0.4 percent while the S&P BSE S&P BSE Healthcare Index was down 1 percent.
Among the gainers, Indiabulls Ventures rose 4 percent after brokerage CLSA added Indiabulls Ventures to model portfolio.
Coal India advanced 1.5 percent on news reports that it is on track to achieve 1 billion tonne output target.
Max Financial Services jumped 3.6 percent after a huge block deal.
Market breadth was in the favour of losers, with about 2 stocks declining to every 1 stock that advanced.