The BSE Sensex declined 0.3%, or 105.85 points, to end at 33,618.59, while the Nifty 50 Index fell 0.3%, or 29.30 points, to 10,370.25. Software services exporter Infosys fell 1.3% after gaining for four out of the last five sessions, while energy-to-telecom conglomerate Reliance Industries declined 0.8%, its first loss in four days.
"Investors were little conservative ahead of the release of July-September GDP data and the expiry of the monthly derivatives contracts," said Vinod Nair, Head of Research at Geojit Financial Services.
The downside is, however, broadly protected as global cues are positive and the Indian rupee continues to trade on the positive side, Nair said.
Local stocks have hit a series of record highs this month aided by positive global cues, better-than-expected July-September quarterly profits from most large-cap companies, and Moody's Investors Service's upgrade of the country's sovereign credit rating.
Investors are now focused on September-quarter gross domestic product data, due after market hours Thursday. HSBC expects India's GDP to expand 6.3% in the period.
The rupee was trading at a more-than-two-month high against the dollar. The currency closed onshore trading at 64.41 to a dollar in Mumbai, as against 64.50 at close in the previous session.
On Tuesday, 18 of the 30 Sensex constituents ended lower, while overall advancing issues edged declining ones 1,386 to 1,341 and 150 remained unchanged.
State-run Oil and Natural Gas Corp. lost 1.1% after rising 1.4% in the previous session, supported by high crude oil prices.
Engineering and construction major Larsen & Toubro ended 0.8% down at 1,212.30 rupees, reversing a 0.6% initial gain. Kotak Securities raised its target price on the stock to 1,370 rupees from 1,300 rupees earlier.
Glenmark Pharmaceuticals declined 3.3%. The company's manufacturing unit located in a northern state was issued with seven observations for quality lapses from the United States Food and Drug Administration according to an exchange filing. The Baddi unit contributed about 10% of revenue of U.S. sales.
Hindustan Petroleum Corp. fell 1.4% to 418.15 rupees. Jefferies maintained its 'Underperform' rating on the stock and cut the target price to 380 rupees from 385 rupees earlier.
Reliance Communications slid 3.4%. China Development Bank, one of the company's lenders, filed an application with the National Company Law Tribunal, the company said in an exchange filing. Mint newspaper reported the telecom company owes close to $2 billion in syndicated loans to China Development Bank.
Eris Lifesciences jumped 9.3% to 710.85 rupees. Credit Suisse initiated coverage with an 'Outperform' rating and a target price of 770 rupees for the stock.