Selling pressure in finance and banking sectors and a slight rise in global crude oil prices dragged the key equity indices lower during the afternoon session of the trade on Tuesday.
According to the analysts, investors were cautious due to the ongoing poll processes in Chhattisgarh, Mizoram, Madhya Pradesh, Telangana and Rajasthan. Counting of votes will take place on December 11.
In contrast, buying was seen in IT and oil and gas stocks.
Ahead of the OPEC meeting this week, the crude oil prices surged on Tuesday on expectations of supply cuts by the oil cartel. The benchmark Brent Crude traded higher at $62.32 a barrel.
The rupee, after losing 88 paise on Monday, traded flat at Rs 70.44 to a US dollar. It closed at Rs 70.45.
At 1.46 p.m, the S&P BSE Sensex traded 86.35 points lower at 36,154.65 from its previous close of 36,241. The benchmark index touched a high of 36,295.84 and a low of 36,036.39 while NSE's Nifty50 traded just 9.20 points lower at 10,874.55.
Domestic markets like stock markets across the world reacted well on Monday to signs of an easing US-China trade tensions as the two countries agreed to halt additional tariffs.
But the domestic markets ended on a flat note on Monday due to release of weak macro data.
(With inputs from agencies.)