dollar tracking gains in a euro currency that gained after German Chancellor Angela Merkel's conservatives reached a deal with Social Democrats on forming a grand coalition.
Infosys Ltd fell 0.7 percent, Wipro Ltd lost 1.1 percent, while Tata Consultancy Services Ltd also ended 0.4 percent lower.
Some bank shares also fell on profit-taking. State Bank of India ended 1.2 percent lower, while Yes Bank Ltd ended 1.7 percent down.
Among other decliners, Wockhardt Ltd slumped 8.3 percent after the U.S. Food and Drug Administration imposed an "import alert", effectively a ban, on a domestic plant operated by the Indian generic drug maker.
Maruti Suzuki India Ltd ended 0.2 percent lower after the company said it will recall 1,492 vehicles.
State-run Power Grid Corp of India's fell 2.2 percent on stock supply concerns ahead of the sale of its shares valued at about $1.2 billion likely to open on Dec. 3.
However, among gainers, some sugar companies surged after Prime Minister Manmohan Singh set up a committee on Tuesday under the chairmanship of agriculture minister to look into how to give help to struggling sugar mills.
Bajaj Hindusthan Ltd rose 1.8 percent, while Shree Renuka Sugars Ltd ended 1.2 percent higher.
FACTORS TO WATCH
* German coalition deal lifts euro
* Brent holds at $111 on supply concerns
* Euro makes move on yen, China shares outperform
* Foreign institutional investor flows