Indian shares extended fall on Tuesday, tracking lackluster Asian equities and amidst reduced chances of a rate cut by the central bank after retail inflation quickened to a seven-month high.
Equities in Asia edged lower after China's retail sales and industrial output came in under market forecasts.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent after two sessions of declines.
Investors are awaiting clues on monetary policy from heads of some major central banks at a European Central Bank conference on Tuesday.
The S&P BSE Sensex fell 0.28 percent at 32,941 while the broader NSE Nifty dropped 0.38 percent to 10,186.
On Monday, India's retail inflation picked up in October to a seven-month high, driven by faster rises in prices of food and fuel products, dampening chances of an interest rate cut by the central bank next month.
Among the top Sensex losers, Larsen and Toubro fell 2.5 percent, Tata Consultancy Services dropped 1.7 percent, Power Grid lost 2.6 percent while Asian Paints shed 1.8 percent.
Bharti Infratel lost 4.1 percent after a huge block deal.
Jaiprakash Associates slumped 7 percent after the Supreme Court directed its directors to personally appear in court and disclose personal assets.
But Future Enterprises advanced 2 percent after losses narrowed in its September quarter earnings.
Repco Home Finance surged as much as 14 percent after the company posted a near 22 percent rise in September quarter net profit.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.