* The BSE index down 0.16 percent and the NSE index down 0.27 percent. * Larsen & Toubro shares fall 1.5 percent. Citigroup and Barclays downgraded the engineering conglomerate on concerns over order cancellations and weak investment cycle. * Traders say market is consolidating and likely to remain in a narrow range until outcome of industrial output and Infosys earnings due on Friday. * Infosys down 1.9 percent on caution ahead of earnings. * However, defensive stocks up: Index heavyweight ITC Ltd (RIC) gains 2 percent after falling 3.9 percent last month and 2.7 percent so far in January. The cigarette maker surged 42.47 percent last year. * Cipla gains 1.4 percent while Dr Reddy's Laboratories up 1 percent.