Indian shares snapped a five-day winning streak on Tuesday after the government revised down its economic growth forecast for the current fiscal year to 6.9 percent, its slowest pace in three years.
Other Asian markets ended on a mixed note and European shares fell for a second day in a row, weighed down by mixed earnings results and concerns about Greece's unresolved debt restructuring talks, dampening investor sentiment.
Both the BSE Sensex and the broader Nifty index ended the day down about half a percent each, reversing early gains, with capital goods, realty, power and metal stocks pacing the declines. Oil/gas, consumer durable, banking and FMCG stocks witnessed stock-specific buying, limiting the downside.
Elsewhere in Asia, China's Shanghai Composite index fell 1.7 percent after the International Monetary Fund warned that China's growth rate would drop abruptly in the event of a sharp recession in Europe. Hong Kong's Hang Seng eased marginally and Japan's Nikkei average edged down 0.1 percent.
Australia's benchmark S&P/ASX 200 retreated half a percent after the Reserve Bank of Australia surprisingly kept interest rates on hold at 4.25 percent, despite the uncertain global economic outlook.
The major European averages were down between 0.3 percent and 0.5 percent in early trading, as renewed fears over the possibility of a Greek default on its debt kept many investors at bay.
For comments and feedback: editorial@rttnews.com