The 30-share Sensex ended down 211 points at 18,226 after touching a low of 18,207 and the 50-share Nifty ended down 48 points at 5,495 after touching a low of 5,487.
Both the Sensex and Nifty have lost just ove 4% in the last five trading sessions amid persistent selling by foreign institutional investors.
FIIs have sold equities worth Rs 1,107 crore in the past five trading sessions, as per data released by Securities and Exchange Board of India.
In Asia, Japan's Nikkei average ended flat on Tuesday after rising to its highest level in nearly five years, as investors cashed in gains on stocks that had stellar performances after the central bank unveiled massive stimulus moves last week to revive the economy.
Among others, Hang Seng, Shanghai Composite and Straits Times ended up 0.4-0.7% each.
European equity markets rose in early trading, led by mining stocks as investors hoped for more accommodative monetary policy from China following benign inflation data, and after U.S. firm Alcoa posted solid earnings.
The DAX, CAC-40 and FTSE were up 0.2-0.5% each.
BSE IT index was the top loser among the sectoral losers down over 2% followed by Oil&Gas, FMCG, Power, Consumer Durables, Realty and Bankex down 0.8-1.8% each.
Shares of select software exporters were down amid weak US economic data and investors turning cautious as earnings are likely to remain muted in the fourth quarter.
Infosys which is scheduled to announce Q4 results on Friday ended down 2.4% at Rs 2,766.
Wipro shares were down after the company demerged its non-IT
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