The S&P BSE Sensex fell 57 points on Tuesday tracking weak global markets and a sharp fall in crude oil prices.

The Sensex closed at 26,846 points, down 0.21%, while the 50-share Nifty fell by 11 points, or 0.15%, to end at 8,131.

The positive industrial production data for August failed to cheer the markets, as concerns over a spike in inflation in September dampened sentiments.

"The Indian equity market closed with marginal losses ignoring impressive Industrial Production data which grew by 6.4% for the month of August. Sentiment took a hit after retail inflation, based on CPI for September increased to 4.41%, from 3.74% the earlier month, on account of higher food prices," said Amar Ambani, Head of Research, IIFL.

Further, the markets were also under pressure from weak global markets. An official data revealed China's imports fell sharply by 20% to a seven-month low in September against 13.8% decline in August, indicating the country's still suffers from weak domestic demand.

"While the headlines have focused on the weak value data, the pick-up in China's industrial import volumes suggests that ongoing fiscal stimulus, notably infrastructure spending, and earlier price falls are boosting commodity demand. We expect import volumes to remain strong in coming months, which should help prices to recover further," said Capital Economics in a note.

Domestic stock prices were also pressurized by a 5% decline in global crude oil prices after a report from the Organization of the Petroleum Exporting Countries (OPEC) showed that the oil cartel continued to increase its oil output.

"OPEC envisages a significantly higher call on OPEC next year. It looks set to be a good 500,000 barrels per day higher than previously anticipated and to increase to 30.8 million barrels per day. The main reason for this is lower than expected non-OPEC production, which is set to decline by 130,000 barrels per day next year. OPEC's strategy of crowding suppliers with higher production costs out of the market appears to be working, in other words," said Commerzbank Corporates & Markets. 

Among the BSE sectoral indices, the IT index was the biggest loser, while Reality ended as the top gainer.

Infosys shares extended their losses for the second consecutive session, ending 2.1% down after the company reduced its dollar revenue guidance for the current financial year. HCL Tech stock prices were down nearly 3%.

Reliance Capital (up 5.4%), Reliance Infra (up 2.1%), BHEL (up 1.4%), Maruti Suzuki (up 1%) and ITC (up 1%) were the top gainers among the index stocks.

ONGC (down 3.6%), Hindalco (down 2.8%), Tata Steel (down 2.3%), Infosys and Bharti Airtel (down 1.2%) were the top losers among Sensex stocks.

On the commodities front, gold prices fell by Rs 70 to Rs 26,800 per ten grams, tracking weakness in metal prices in the overseas markets. Silver prices dropped by Rs 200 to Rs 36,800 per kg.

The rupee fell by 44 paise to 65.19 against the US dollar on the back of increased dollar demand from banks and imports.