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Indian shares fell on Tuesday, dragged by HDFC Bank's decline on likely lower-than-expected inflows due to a staggered weight adjustment on a key global stock index, and as broad-based selling pressure intensified.

The NSE Nifty 50 index shed 0.85% to 24,139, while the S&P BSE Sensex lost 0.87% to 78,956.03.

HDFC Bank, India's top private lender the heaviest stock in the Nifty 50, fell 3.4% and led losses on the index.

Global indexes provider MSCI raised the proportion of HDFC Bank's shares available for purchase by overseas investors but said the changes will come into effect in two stages, in August and in November, contrary to market expectations of one move in this month.

Brokerage Nuvama, which earlier predicted inflows of $3.2 billion-$4 billion into HDFC Bank in August after the revision, now sees $1.8 billion in inflows this month.

HDFC Bank also dragged financials and banks, which shed 1.9% and 1.5%, respectively.

Meanwhile, broad-based profit booking intensified on rising caution among investors due to geopolitical risks in the Middle East and concerns over the U.S. economy, said Siddharth Sedani, equity analyst at Anand Rathi Financial Services.

"Volatility and selling pressure could rise in the next few sessions, depending on the quality of U.S. macro data," Sedani added.

Investors await U.S. producer price data, due after India market hours and consumer price data, scheduled on Wednesday, to assess the timing and quantum of rate cuts, as well as to gauge the health of the world's largest economy.

Twelve of the 13 major sectors logged losses on the day.

Bucking the trend, consumer firm Marico gained 2.1% after restarting manufacturing its operations in Bangladesh.

Dixon Tech and Oil India also rose about 2.6% and 3%, respectively, boosted by their inclusion into the MSCI emerging markets index.