The 30-share barometer, which rallied by 330.25 points in the previous session, moved down by 54.62, or 0.32 per cent, to 17,138.93 points in early trade today.

In a similar fashion, the wide-based National Stock Exchange index Nifty declined by 21.35 points, or 0.41 per cent, to 5,177.90 points.

Brokers said investors booked profits after recent gains amid a mixed trend on the other Asian bourses.

In the Asian region, the Hong Kong's Hang Seng index shed 0.04 per cent, while Japan's Nikkei was quoted 0.16 per cent higher in early trade.

PREOPEN:

Sensex seen down; HDFC, autos in focus

NEW DELHI

Sensex is expected to open lower on Wednesday as investors turn cautious after a sharp rally in January, with other Asian markets struggling to hold their ground.

Housing Development Finance Corp could fall after sources told Reuters U.S. private equity investor Carlyle Group plans to sell about 20 million shares in the leading Indian mortgage lender via stock market deals on Wednesday.

Carlyle, which owns just over 5 per cent of HDFC, could raise up to $283 million in the planned deal that will cut its stake in the Indian company to nearly 4 per cent, the sources said.

Investors will also watch January sales releases from automakers such as Maruti Suzuki, Tata Motors and Mahindra & Mahindra.

Asian stock markets cut early losses after better-than-expected reading from manufacturing index lifted sentiment, but investors remained on guard ahead of more manufacturing surveys later from the world's biggest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed by 0245 GMT, after opening lower on weaker U.S. data, which dented recent optimism that the world's largest economy may escape the gloom from the euro zone debt crisis.

The Nifty India stock futures in Singapore were down 0.29 per cent, indicating a lower open for the local market.

On Tuesday, India's benchmark share index closed 1.96 per cent higher at 17,193.55, taking gains for last month to more than 11 per cent in what was its best January since 1994.

STOCKS TO WATCH

* UTV Software Communications Ltd may rise after Walt Disney Co said it would acquire controlling stake in the Indian company and delist UTV.