Banks lead Australian shares lower but miners lift

The financials sector is weighing down the ASX, with all big four banks losing ground. (Bianca De Marchi/AAP PHOTOS)

An early lift for Australia's share market has crumbled to a loss, after valuation concerns and portfolio rebalancing dragged on the heavyweight banking sector.

The S&P/ASX200 fell 45.8 points on Tuesday, down 0.52 per cent, to 8,682.8, as the broader All Ordinaries lost 37.8 points, or 0.42 per cent, to 8,996.9.