Reuters Market Eye - The Sensex was down 0.25 percent, while the Nifty also fell 0.26 percent, as traders said the market is more worried about the timing of reform measures.
Asian shares steadied on Tuesday as investors saw weak regional and global economic data as raising the prospect for more stimulus from central banks to underpin growth, while Europe kept hopes alive for some progress in tackling its debt crisis.
A Reuters poll showed India's central bank is expected to keep its key interest rates steady on Sept 17 meeting, pointing to hawkish comments from policymakers concerned over high inflation.
Tech shares were leading the fall: Infosys falls 0.8 percent while TCS is down 0.84 percent. ICICI Bank fell 0.5 percent.