Shares ended lower on Tuesday, dragged by bank stocks as uncertainties around state-run banks hit risk appetite.
Punjab National Bank uncovered more fraudulent transactions, taking its overall prospective loss to nearly $2 billion, while the finance ministry announced a 15-day deadline for PSU lenders to improve oversight.
The benchmark BSE index closed down 0.29 percent at 34,346.39. The broader NSE index ended 0.27 percent lower at 10,554.3. Both indexes fell for the first time in three sessions.
The Nifty PSU Bank index closed 3.49 percent lower, with PNB ending 12.2 percent down.