India's BSE Sensex finished about 0.6% down at 84,680 on Tuesday, extending losses from the prior day, as lingering uncertainty around the timing and terms of a potential India–US trade deal continues to trigger foreign outflows. In the meantime, traders assessed flash PMI surveys and awaited key US jobs data due later in the day for clues on the Fed's rate path. On the domestic data front, India’s business activity continued to grow in December, remaining robust overall, despite slowing for the fourth month in a row. Among top decliners, Axis Bank slid 5%, after brokerage Citi warned that pressure on net interest margins could persist into the December quarter. Eternal, HCL Technologies, Tata Steel and Bajaj Finserv were also among the worst performers, with losses ranging from 1.9% to 4.6%. On the upside, Bharti Airtel rose 1.6% after Morgan Stanley upgraded it to "overweight" from "equal-weight" citing strong growth prospects.