The 30-share BSE Sensex was down 102.23 points at 29,872.01 and the 50-share NSE Nifty fell 31.75 points to 9,233.40.
Bajaj Auto share price gained nearly 2 percent after Morgan Stanley has upgraded the stock to overweight from underweight and also raised target price to Rs 3,251 (from Rs 2,502 earlier), implying 17 percent upside.
Reliance Industries continued to trade at 9-year high, up 1 percent and Infosys gained strength, rising nearly a percent.
Axis Bank and HDFC Bank were gainers while SBI and ICICI Bank were losers ahead of RBI policy meet outcome.
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