The 30-share index fell by 55.25 points, or 0.28 per cent, to 19,687.22 in early trade with shares of banking, capital goods, FMCG and realty leading the fall. Sensex had gained 9.71 points in the previous session.
Similarly, the wide-based National Stock Exchange index Nifty declined by 19.40 points, or 0.33 per cent, to 5,821.15.
Brokers said selling by funds as well as retail investors after rise in August wholesale inflation dashed hopes of RBI cutting rates later this week and a mixed trend in Asian region ahead of the US Federal Reserve's policy meeting, mainly attributed to the fall.
The Fed is to hold a policy meeting on Tuesday and Wednesday amid speculation it will start reeling in its USD 85 billion-a-month bond-buying programme. In the Asian region, Hong Kong's Hang Seng index fell by 5.50 points, while Japan's Nikkei Index was up by 52.32 percent in morning trade on Tuesday.
The US Dow Jones Industrial Average ended 0.77 percent higher in Tuesday trade.


Latest News  from Business News Desk