“Also the Sebi’s new margining system starts from Tuesday which also likely impacted mid- and small-cap stocks where aggressive profit booking was seen,” he added.
Meanwhile, market sentiment was also weakened after the release of core sector data.
The output of eight core infrastructure sectors contracted for the fifth consecutive month, dropping 9.6 per cent in July, mainly due to a decline in production of steel, refinery products and cement.
The production of eight core sectors had expanded by 2.6 per cent in July 2019, data released by the Commerce and Industry Ministry on Monday showed.
Investors are now awaiting gross domestic production (GDP) data, scheduled to be released later in the day.
Bourses in Shanghai, Hong Kong and Seoul ended in the red, while Tokyo settled with gains.
Stock exchanges in Europe were trading on a positive note in early deals.
Global oil benchmark Brent crude was trading 1.48 per cent higher at USD 46.49 per barrel.