Indian shares fell sharply on Tuesday and ended the day as Asia's worst performer as index heavyweight ITC fell the most in 25 years with the government increasing taxes on cigarettes under the goods and services tax (GST).Tuesday's fall was only the third fall of 1 per cent or more this year underlining the strength of the rally which has taken the Sensex and the Nifty to record highs. But on Tuesday, it was a different story and the 30-stock Sensex tumbled nearly 364 points (1.1 per cent) while the Nifty fell 89 points (0.9 per cent) to 9827.15.ITC contributed 83 per cent to the fall of both indices. It lost nearly Rs 50,000 crore in market capitalisation on Tuesday. Indian markets were also the worst performers in the Asian region. Market sentiment was subdued following uncertainty over passage of health care bill in the US after two more Republican senators announced their opposition to it. Rising doubts over the passage of the bill cast a cloud on the prospects of US President Donald Trump's reforms plan.ITC was the Sensex's worst performer ending down 12.6 per cent at 284.60 followed by Reliance Industries which snapped an 11session gaining streak to end down 2 per cent at Rs 1,519.90. RIL contributed 13 per cent to the index's fall.Nineteen shares rose on the Sensex, while only nine fell. The midand small-cap indices dropped roughly 0.6 per cent. The BSE FMCG index was the bigger loser among sectoral indices led by the plunge in ITC. It was a mixed bag for bank shares with ICICI Bank hitting a 52-week high intra-day before ending marginally lower at Rs 302.60.Brokers and fund managers say that the Nifty remains on track to scale 10,000 in the near term after the selling in ITC subsides though valuations are stretched at about 19 times one year forward earnings. “While the market appears stretched from a near term valuation perspective, local inflows remain strong and foreign investors are also waiting on the sidelines to buy on any corrections,“ said Pratik Gupta, managing director and head of equities, Deutsche Bank.According to Gupta, foreign investors are looking past the weak earnings recovery at the strong macroeconomic outlook and government reforms. Rate cut hopes have risen after the consumer price index-based inflation fell to a record low of 1.5 per cent in June. Moreover, the US Federal Reserve has hinted at gradual tightening of rates and oil prices are low, which bodes well for emerging markets such as India.Foreign portfolio investors were net buyers of shares worth Rs 317.44 crore on Tuesday while domestic institutional investors (DIIs) sold stocks worth Rs 975 crore.For the year 2017 so far, foreign portfolio investors have pumped in about Rs 56,000 crore while DIIs have pumped in Rs 23,300 crore.“In Tuesday's fall, major contribution was from ITC. Reliance Industries also contributed to the fall. Till these stocks stabilise, index will remain sideways but markets broadly remain in a positive zone, so 10,000 (for Nifty) is likely to come,“ said Ashish Chaturmohta, head of derivatives and technicals at Sanctum Wealth Management.