The broader 50-issue NSE Nifty dropped 38.35 points, or 0.38 %, to close at 10,186.60 after shuttling between 10,248 and 10,175.55.
On Friday, the NSE Nifty closed 0.12 per cent higher at 10,321.75 while the benchmark BSE Sensex settled up 0.19 per cent at 33,314.56.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.
Equity markets on Tuesday spiralled down further as Sensex lost nearly a 100 points to close below the 33,000-mark.
Besides, inflation at the wholesale level too rose to six-month high of 3.59 % in October as the prices of food articles rose.
"Weak Asian cues also negatively influenced trading sentiments", Jasani added.
Industrial production (IIP) grew at a slower pace of 3.8 per cent in September, mainly due to subdued performance of the manufacturing sector coupled with contraction in output of consumer durables.
"Global cues were not helping either amid uncertainty over the U.S. tax reform, slowdown in Chinese factory output and growing political issues in the United Kingdom", he added.
Share sale by foreign portfolio investors (FPIs) was worth a net Rs 233.58 crore yesterday, provisional data showed.
Shares of Larsen and Toubro fell 2.46% to become the biggest loser on the Sensex.