Benchmark indices opened the day lower as sentiments were affected after two key legislations including the Land Acquisition Bill and the GST Bill were not likely to be passed in the current session of parliament.
The Sensex was trading with losses of 184 points at 27,323 points, while the Nifty was down 62 points in early trade.
Bank of Baroda which had seen a sharp rally of almost 16 per cent in trade on Monday was the biggest loser dropping 4 per cent. Other losers in trade were banking stocks including private sector banking names like ICICI Bank, Axis Bank, Kotak Bank and IndusInd Bank.
Shares in Just Dial were trading higher after despite Tiger Global selling a 2.1 percent stake in the company.
IT stocks also saw some selling pressure despite the rupee weakening in trade. Shares of Infosys, TCS and Wipro were trading lower. Shares in Jubilant Industries surged 10 per cent after reports that it would transfer a unit to Aditya Birla Retail. The stock hit the upper end of the circuit filter.
Meanwhile, markets across Asia were trading with losses with the Japanese Nikkei, the Shanghai Composite and the Singapore's Strait Times all lower.