Benchmark indices opened the day lower after global markets saw a sell-off following weak overnight closings in the US and Europe. Analysts have now raised the prospect of an interest rate hike in the US in Dec to as high as 70 per cent, as compared to 58%.
The Sensex was trading with losses of 162 points, at 25,960 points, while the Nifty fell 55 points in trade. Shares in Jet Airways gained after the company said that it was buying 75 Boeing 737 Max 8 planes.
Top Nifty gainers in early trade were Sun Pharma, Tata Motors and Axis Bank.
PSU banking stocks which were in the limelight on Monday, fell after Bank of India reported losses, confirming the fact that there maybe still more pain left for PSU banking stocks.
Midcap stocks, which saw a remarkable recovery on Monday were trading with gains. NHPC was up 4% from the space, while Andhra Bank was the other gainer.
Shares in JSW Steel fell after the company said that steel production for the month of Oct declined.
Eros Media shares jumped 4 per cent after posting an 80 per cent increase in profits.
Meanwhile, markets across Asia were trading with losses, after weak closings in the US. The Hong Kong's Hang Sang and the Seoul Composite were the biggest losers in trade.