The benchmark indices extended losses in the afternoon deals today. The Sensex was trading at 15,735, down 161 points, while Nifty fell 48 points at 4,663.
Heavy selling pressure was seen in realty and metal stocks. The realty index on the BSE plunged 5.6 per cent and the metal index fell 3.1 per cent.
Among the Sensex stocks, DLF was the biggest loser. The stock fell nearly 6 per cent. Hindalco, RCom and Reliance Infra also lost over 5 per cent each.
Bharti Airtel, however, was up 3.5 per cent to be the biggest gainer among the Sensex stocks.
Asian stock markets were mostly lower Tuesday despite improvement in U.S. manufacturing as doubts lingered about the durability of a rebound in the world's largest economy.
The region's markets, which tumbled the day before on a fall in U.S. consumer spending, got little relief from news that American manufacturing grew at its fastest pace last month since April 2006.
Hong Kong's Hang Seng led Asia's losses, falling 154.28, or 0.7 percent, to 21,465.91 while South Korea's Kospi was down 0.4 percent at 1,552.74. Japan's market was closed for a holiday.