Reuters Market Eye - The BSE Sensex falls 0.34 percent, while the 50-share Nifty declines 0.38 percent. Banks lead decliners ahead of April-June GDP data due on Friday. Although weaker-than-expected growth could raise expectations for rate cuts, investors are wary given the RBI remains hawkish.
ICICI Bank falls 1.2 percent, while State Bank of India declines 1.8 percent.
Infosys falls 0.9 percent, down for a second day as investors continue to book profits after a recent rally.
Shares of Indian oil refiners gain on hopes for higher margins as Venezuelan gasoline exports are expected to be impacted because of a blaze at the country's biggest refinery.
Reliance Industries gains 0.8 percent, while Cairn India adds 1.3 percent.