The dollar's weakness against rivals overseas supported the rupee.
The 30-share Sensex ended down by 59 points at 27,027 and the 50-share Nifty slipped 7 points at 8,087.
The death toll in Nepal's devastating earthquake on Sunday jumped to 7,040 with another 14,123 people injured.
Aam Aadmi Party leader Mayank Gandhi said its chief Arvind Kejriwal's resignation as Delhi chief minister would not affect the party's poll prospects, even as the party candidate from North West Mumbai parliamentary seat claimed to have an edge over his competitors in the Lok Sabha elections.
The rupee has dropped by 83 paise or 1.24 per cent in three days
Offers 12.60% in revenue share to Cidco, while only other bidder GMR offered 10.44%.
Sharp fall in capital goods production and manufacturing activity also dented sentiments.
Chief Minister Pinarayi Vijayan, however, told reporters that no one would be allowed to block devotees from proceeding to Sabarimala.
In the forward market, the premium for dollar moved up on fresh paying pressure corporates.
Moni Chadha was with Lal Bahadur Shastri in Tashkent. He counters colourful conspiracy theories with sobering facts.
The 30-share Sensex ended down 556 points at 27,886 and the 50-share Nifty ended down 158 points at 8,444.
The year 2014 alone witnessed 2.37 lakh road accidents on national and state highways across the country which had left at least 85,462 people dead and 2.59 lakh injured.
Progress on monsoons along with favourable base effect in 2HFY2017 continues to point towards RBI achieving its near 5 per cent inflation target by the year-end
Banking and telecom will see the highest impact of this transition.
US stocks rose more than 1% on Tuesday, with the S&P 500 coming less than 2% below its record peak set last month.
An inquiry has been ordered by the Director General of Mines Safety and a high-level committee of experts has been constituted by Coal India to investigate the causes of the accident.
Presenting the Narendra Modi government's maiden Rail Budget, Railway Minister Sadananda Gowda announced setting up of logistic parks and private freight terminals on PPP model.
India builds up record FX after Fed hints rate hike in future.
The upcoming July derivatives expiry later in the week would also add some volatility to the market proceedings.
Hosts Chile brushed aside Bolivia 5-0 at the Copa America on Friday to finish top of Group A and ensure they remain in the capital Santiago for their quarter-final.
The US is keen to improve business ties with India.