"fiscal cliff" of potential tax hikes and spending cuts kept most buyers on the sidelines.
France's CAC was down by 0.31 per cent, the UK's FTSE by 0.49 per cent and Germany's DAX by 0.52 per cent.
US stock indices yesterday fell to multi-month lows on fears of spending cuts and tax hikes slated to begin in January.
The Dow Jones Industrial Average and the Nasdaq Composite Index settled down by 1.45 per cent and 1.28 per cent.
Back home, market analysts said the October inflation data , which is still above the apex bank's tolerance level, did not re-ignite any fresh hopes of rate cut in the RBI's next monetary policy meeting.
22 out of 30 Sensex-based counters today ended lower. Tata Steel was the top loser among Sensex constituents with a fall of 2.66 per cent, followed by ITC (2.57 pc), Jindal Steel (2.32 pc), TCS (2.23 pc), Wipro (2.19 pc) and Infosys(1.92pc).
Tata Motors (1.86 pc), Hindalco (1.85 pc), Hero MotoCorp (1.75 pc), Dr Reddy's Lab (1.70 pc), Sterlite (1.64 pc), Cipla (1.32 pc), ONGC (1.25 pc), SBI (0.85 pc), HDFC Bank (0.67 pc) and RIL (0.63 pc) also closed lower among Sensex pack. However, Bharti Airtel that rose by 2.95 per cent, BHEL by 1.01 per cent, HDFC by 0.88 per cent and HUL by 0.81 per cent were among Sensex gainers.
Amongst the sectoral indices, the BSE-IT dipped by 1.79 per cent, followed by BSE- Metal (1.66 pc) and BSE-FMCG (1.30 pc). On the other side, BSE-Realty firmed by 1.97 per cent and BSE-CD by 1.64 per cent.
The total turnover was at Rs 2,526.45 crore. Meanwhile, FIIs sold shares worth Rs 18.09 crore on November 13 as per provisional data with stock exchanges.