The BSE Sensex fell 0.5 percent on Tuesday, tracking Asian peers that fell on fears that Europe's sovereign debt troubles are worsening and could trigger a second full-blown banking crisis.

Adding to the gloom are worries that the United States may be sliding back into recession, a concern heightened by a slew of downbeat data, most recently employment figures that showed the world's top economy failed to create any jobs last month.

At 09:15 a.m. (0345 GMT), the 30-share BSE index was trading down 0.44 percent at 16,640.13 points, with 22 of its components in the red.

The broader 50-share NSE index was trading 0.48 percent lower at 4,992.95 points.