Indian equity indices opened on a weak note and continued to trade lower on Tuesday, as investors remained cautious ahead of the US Federal Reserve's policy rate decision later this week.

At home, there were concerns over weak rupee and foreign outflows. Data showed India’s trade deficit ballooned to a record high of $37.8 billion in November from $27.1 billion in October, worse than consensus expectations of $23 billion.

LIVE: Markets in India are likely to tread cautiously as investors await key policy rate decision from the US Federal Reserve later this week