BENGALURU - Indian shares ended lower on Tuesday as a fresh flare-up at the country's disputed border with China dampened investor sentiment, with the market also tracking weakness in global peers on doubts about a recovery in tech stocks.

The blue-chip NSE Nifty 50 index closed 0.33% lower at 11,317.35, while the benchmark S&P BSE Sensex closed down 0.14% at 38,365.35.

India and China accused each other of firing in the air during a new confrontation on their border in the western Himalayas, further escalating military tension between the nuclear-armed nations. 

Adding to the negative news, a domestic arm of ratings agency Fitch said India's economy is projected to contract 11.8% on the year in the current fiscal year. 

The economy shrank 23.9% in quarter ended June, the worst quarterly performance among all major economies globally.

The Mint newspaper said on Monday a second round of stimulus measures for the Indian economy was on the table.

World stocks also fell on Tuesday, with Nasdaq futures down about 2% as U.S. technology stocks looked set to deepen a selloff from last week.

In domestic trading, the Nifty bank index ended 0.87% lower, with Axis Bank Ltd and Kotak Mahindra Bank Ltd among the top drags on the Nifty 50.

The Reserve Bank of India on Monday outlined guidelines for restructuring loans for Indian banks, as the sector braces for a surge in bad loans amid the COVID-19 crisis. 

Conglomerate Reliance Industries was the top boost to the Nifty, closing up about 1%.

Media reports said the Mukesh Ambani-controlled firm was in talks with companies such as Facebook Inc and private equity firms Silver Lake and KKR to invest in its retail arm. 

(Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Aditya Soni) ((AnuronKumar.Mitra@thomsonreuters.com; +91 99863 58469;))