Indian shares extended losses on Tuesday afternoon amid tepid Asian cues and profit taking in bluechips like HDFC, ITC, HDFC Bank, Infosys and Reliance Industries Ltd (RIL).

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The Sensex traded lower by over 259 points or 0.71 percent, at 36,319 at 12.21 pm. The Nifty slipped below 10,900, falling by nearly 83 points or 0.75 percent, to trade at 10,879.

Support for indices came in from Sun Pharmaceutical Industries and Kotak Mahindra Bank. The shares of Sun Pharmaceutical surged more than five percent after the pharma company announced steps to address the alleged corporate governance issues at the firm.

Kotak Mahindra Bank shares advanced two percent on reports that the private lender may look for an out-of-court settlement with the Reserve Bank of India (RBI) on promoter stake dilution issue, according to CNBC-TV18.

Broader markets also underperformed with the Nifty MidCap down by 0.84 percent and the BSE MidCap lower by 0.85 percent.

Apart from Sun Pharmaceutical and Kotak Mahindra Bank, GAIL, HPCL, Wipro and Bajaj Finance rose between half a percent and 2 percent.

Shares of Prabhat Dairy surged 20 percent on Tuesday, hitting an opening high of Rs 111.65 after the company sold its dairy business to Lactalis's Indian subsidiary Tirumala Milk Products for Rs 1,700 crore.

Metal and auto stocks fell as the International Monetary Fund (IMF) cut global growth forecast refueling concerns over slowdown, a day after weak Chinese trade data dented investors' risk appetite for equities.

Vedanta, JSW Steel, M&M, Tata Steel, Hindalco, HCL Technologies and Tata Motors fell between 2 and 3.3 percent.

Meanwhile, the rupee traded at 71.37 against the US dollar. The home currency had opened at 71.23 after Monday's close of 71.28.

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Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.