Sensex, Nifty lower; banking stocks lose

Reuters Market Eye - The BSE Sensex falls 0.12 percent, while the Nifty is down marginally.

Asian shares also steady, with caution prevailing ahead of U.S. monthly jobs data on Friday which will help set expectations about the timing of any potential tapering of the Federal Reserve's stimulus program.

Power Grid Corp of India shares rise 1.8 percent after stronger-than-expected demand for its $1.1 billion share sale.

Two-wheeler stocks gain on optimism about their earnings outlook: Hero MotoCorp is up 2.4 percent, Bajaj Auto gains 0.2 percent, while Eicher Motors gains 1.5 percent.

BSE banking index falls 0.34 percent. Yes Bank down 1.5 percent.