The BSE and the Nifty were trading lower upto 0.4 percent lower as investors continued to book profits.
Investors showed little reaction after Prime Minister Narendra Modi named Arun Jaitley as Finance Minister as the decision had been widely expected.
Indexes ended flat on Monday, as markets take a breather. The benchmark index has gained 9.9 percent so far this month on the back of hopes of an economic revival by the Modi-led government.
Investors took profits in most of the recent out performers such as State Bank of India, which is down 1.24 percent, adding to its 1.9 percent fall on Monday. The stock had gained 9.6 percent on Friday after its earnings.
Shares in Gail India Ltd fell as much as 6.1 percent after the company`s earnings missed some analysts` expectations.
However, technology stocks, which were not part of the recent rally, gain. Infosys Ltd is up 1.2 percent while Wipro Ltd gains 2.1 percent.