At 9:36 am, the Sensex traded 58.05 points - or 0.15 per cent - lower at 38,662.52 while the Nifty was down 24.45 points - or 0.21 per cent - at 11,534.15.

The Nifty slid below the 11,500 mark for the first time since May 17.

Top percentage laggards on the 50-scrip Nifty index at the time were Titan, UPL, Asian Paints, HDFC, Tata Consultancy Services and Hindustan Unilever, trading between 0.96 per cent and 10.14 per cent lower.

On the Sensex, Asian Paints, HDFC, TCS and Kotak Bank were the top percentage losers.

HDFC, HDFC Bank and TCS weighed the most on Sensex.

TCS shares fell as much as 1.94 per cent to hit an intraday low of Rs 2,133.20 on the NSE, ahead of the earnings announcement by the company for the quarter ended June 30. The results are expected post-market hours.

The Sensex and Nifty had on Monday registered their worst single-day fall of 2019 as investor sentiment was spooked by the Budget proposals, ending 2.01 per cent and 2.14 per cent lower respectively.

According to analysts, Budget proposals such as higher tax incidence for high net worth individuals and foreign institutional investors, and the hike in minimum public shareholding for listed companies are spooking the markets.

Globally, equities in other Asian markets struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day.