Top laggards on the 50-scrip benchmark index at the time were Tech Mahindra, Axis Bank, Hindalco, IndusInd Bank and Bharat Petroleum, struggling with losses of between 1.28 per cent and 3.37 per cent. Axis Bank, HDFC Bank and Reliance Industries were the top drags on the Sensex.

Axis Bank on Tuesday posted a net profit of Rs. 1,370.08 crore in the quarter ended June 30, missing Street estimates. Analysts said asset quality concerns persist in the lender.

On the same day, Tech Mahindra reported a net profit of Rs. 959.3 crore in the April-June period.

On the other hand, Hero MotoCorp shares rose as much as 2.26 per cent, a day after the auto maker reported a 38.29 per cent rise in net profit to Rs. 1,257.34 crore in the quarter ended June 30.

Equities in other Asian markets weakened in early trade on renewed concerns about the US-China trade war. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.04 per cent while Japan's Nikkei slid 0.84 per cent.

Major Wall Street stock averages ended slightly lower on Tuesday, with the S&P 500 losing 0.26 per cent, after US President Donald Trump warned China against waiting out his current presidential term before finalising a trade deal.

S&P 500 mini futures rose 0.17 per cent in Asia. The S&P 500 index has risen 2.4 per cent so far this month, bolstered by expectations for Fed easing.

Later in the day, the Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. The expected easing by the US central bank has supported risk asset prices worldwide.

As a new round of US-China trade negotiations started in Shanghai, Mr Trump tweeted that if he wins re-election in November 2020, the outcome could be no agreement or a harsher one.