All sectoral indices, led by oil and gas, power, realty and power were in the negative zone.
The stock markets ended Tuesday's session on a lower note, with BSE benchmark index Sensex declining 261.52 points.
SP BSE Sensex slip 0.74 per cent and closed at 35,286.74.
The Nifty50 index sheds 89.49 points or 0.83 per cent to settle at 10,710.45.
Losses in the indices were led by deep global trade tensions after US President Donald Trump threatened to impose a 10 per cent tariff on $200 billion worth of Chinese goods.
Trump's move came after Beijing decided to raise tariffs on $50 billion in US goods, which was in retaliation for US tariffs announced on Friday.