The 30-share index was trading 33.67 points or 0.08 percent lower at 40,453.76 in morning trade. The broader Nifty was trading 11.00 points or 0.09 percent down at 11,926.50.
Top losers in the Sensex pack in early trade included Yes Bank, TCS, Tech Mahindra, PowerGrid, Infosys, Axis Bank, ITC and IndusInd Bank, falling up to 2.22 percent.
On the other hand, Sun Pharma, Tata Motors, HUL, ONGC, HDFC, Bajaj Finance, and SBI gained up to 1.76 percent.
In the previous session, the Sensex settled with gains of 42.28 points or 0.10 percent at 40,487.43. The 50-scrip NSE Nifty closed 16 points or 0.13 percent higher at 11,937.50.
Foreign institutional investors (FIIs) emerged as net buyers in the capital market, infusing Rs 459.22 on Monday, while domestic institutional investors bought shares worth Rs 74.93 crore, data available with the stock exchange showed.
Meanwhile, the rupee appreciated by 6 paise to 70.98 in the early session on Tuesday.
Brent futures, the global oil benchmark, fell 0.09 percent to USD 64.19 per barrel.
Chinese consumer price index surged 4.5 percent in November, the National Bureau of Statistics (NBS) said, the highest rate since January 2012.
In early trade Hong Kong slipped 0.1 percent, Shanghai eased 0.2 percent, Tokyo slipped marginally. Sydney, Singapore, and Taipei fell by 0.2 percent. However, Seoul and Jakarta edged higher.
On Wall Street, the Dow Jones closed 0.4 percent lower at 27,909.60.