Reuters Market Eye - The BSE Sensex and the Nifty are down around 0.5 percent each as oil prices recover after slumping on Monday, as traders question how quickly the Iranian nuclear accord could translate into higher supplies.
Indian shares rallied on Monday on hopes oil prices would slump after Iran clinched a nuclear deal with world powers.
Dealers say caution is also seen ahead of the expiry of November derivatives contracts on Thursday and July-September GDP data on Friday.
State-run oil companies fall on profit taking with Hindustan Petroleum Corp down 1.3 percent after surging 5.7 percent on Monday.
IT stocks fall, tracking a rebound in the rupee this week. Infosys is down 0.5 percent, while Tata Consultancy Services falls 1.2 percent.
(Reporting by Abhishek Vishnoi)