The Australian share market closed firmly in the red on Tuesday following a weaker materials sector and profit-taking.

At 1615 AEDT the benchmark S&P/ASX200 index was down 76.8 points, or 1.59 per cent, at 4753.5 points and the broader All Ordinaries index fell 77.7 points, or 1.61 per cent, to 4754.9 points.

On the Sydney Futures Exchange, the December share price index contract was 79 points lower at 4761 points on a volume of 29,494 contracts.

RBS Morgans Ipswich manager Tony Russell said the weaker local bourse was followed a poorer performance from Wall Street overnight and profit-taking among local investors.

"(We're) looking for further weakness on the markets tonight to flow through," Mr Russell said.

He said there had been a strong performances from the market over the past three or four months and participants were waiting now for profit-takers to move in.

"We've seen a strong Aussie dollar as well and that's giving some concern to our exporters."

Mr Russell said the resources, energy and precious metal stocks were depressed the market on Tuesday falling a fall in the price of crude oil.

New York's main contract, light sweet crude for delivery in December, backpedalled US$1.82, or 2.3 per cent, to US$78.68 a barrel, the largest decline in a month.

Mining giant BHP Billiton declined 88 cents, or 2.21 per cent, to $38.85 and rival Rio Tinto fell $1.89, or 2.82 per cent, to $65.02.

Oil Search was seven cents lower at $6.03, Santos down 17 cents at $15.27 and Woodside $1.25, or 2.46 per cent, weaker at $49.60.

On Monday, the Dow Jones Industrial Average closed down 104.22 points, or 1.05 per cent, at 9,867.96.

Among the banks, ANZ was down five cents at $23.75, NAB was six cents lower at $30.70.

NAB releases its annual results on Wednesday, with ANZ to follow on Thursday.

Commonwealth Bank was off 83 cents, or 1.48 per cent, at $55.15 and Westpac was down 30 cents at $27.23.

In news, Macquarie Group bought Canadian wealth management business, Blackmont Capital Inc, for $C93.3 million (A$95.16 million) to expand the distribution of its brokerage offerings in that country.

Macquarie shares were down $1.02 at $52.18.

Property trust ING Industrial Fund (IIF) is raising $700 million in fresh capital to pay down debt and put the group in a stronger position to make further acquisitions. Its securities are in a tradng halt and last traded at 60 cents.