"Poor earnings, slowdown in domestic consumption coupled with the ongoing NBFC crisis have dampened investor sentiments on the Street. Continue to maintain a cautious stance on the NBFC space. Rising credit costs and higher provisioning to impact bottom line and credit growth," said Hemang Jani, head of advisory at Sharekhan by BNP Paribas.

Global crude oil prices have risen in eight out of of nine trading sessions, gaining 5.2% during the period.

Later in the day, the US Federal Reserve is widely expected to cut interest rate for the first time since the financial crisis more than a decade ago.

Axis Bank fell 6% after lender's bad loans continued to mount and provisions soared. Provisions and contingencies surged 41% on quarter on quarter to ₹3,814.58 crore. On year-on-year basis it risen 14.3%. Gross slippages were at ₹4,798 crore

Coffee Day Enterprises slumped another 20% after the body of its founder VG Siddhartha, who was missing since Monday, was found in Netravati river.

Tech Mahindra Ltd fell 3.2% after the company posted profit that was lower than analyst estimates. The company missed the already modest expectations in Q1FY20 by registering a 1% QoQ revenue decline in CC terms. EBIT margins fell to 11.5%, the lowest in over seven quarters, affected by seasonal factors, strong hiring, and transition costs. Net profits were lower than estimates on operating performance miss, despite support from higher other income.

"Going forward, we expect that weak domestic sentiments may have a negative bearing on the Indian markets. The corporate earnings have also been mixed so far and leading corporates have provided muted outlook for the coming quarters. On the global front, Fed meet may have a meaningful impact on the markets as there are high expectations for a rate cut. Moreover, any positive outcome from the negotiations between US-China for trade tariffs could also provide direction to the markets," said Ajit Mishra, vice president for research at Religare Broking.

Eicher Motors, Indian Oil Corporation, UPL, Ashok Leyland, Apollo Tyres, Allahabad Bank, and Tata Global Beverages, among others, will declare June quarter results today.