Reuters Market Eye - The Sensex falls 0.27 percent while the Nifty is down 0.26 percent.
Banks such as ICICI Bank fall ahead of inflation data, to be released around 12 p.m.
ICICI Bank falls 0.8 percent while HDFC Bank is down 0.9 percent.
A Reuters poll forecast the wholesale price index, India's main inflation gauge, rose an annual 7.7 percent, faster than 7.55 percent in August and well above the central bank's comfort level of 4-5 percent.
Reliance Industries gains 0.17 percent while Axis Bank is up 0.36 percent ahead of their July-September earnings later in the day.