NEW YORK - The stock market drifted lower in moderate trading Tuesday.

The Dow Jones industrial average posted a sharp 12-point decline early in the session but that drop was quickly trimmed and the blue chip average - with the exception of a brief trip into plus territory in the last minutes of trading - registered modest losses throughout the session.

The Dow finished down 4.43 at 1778.50. It fell more than 35 points on Friday and recovered about 14 on Monday.

Broader market indexes retreated. The New York Stock Exchange index slid 0.32 to 135.22. Standard & Poor's 500-stock index lost 0.61 to 234.72. The price of an average share dropped 10 cents.

Losers maintained a solid lead over gainers throughout the day. Declines beat advances 987-663 among the 2,039 issues traded.

Big Board volume shrank to 139,250,000 shares, compared with 143,810,000 Monday.

Composite volume of NYSE-listed issues on all U.S. exchanges and over the counter totaled 165,269,750 shares, compared with 172,908,550 Monday.

The market seemed to drift, seemingly unperturbed by developments in the Mediterranean or domestic government economic data. The government reported Tuesday that consumer prices fell 0.4 percent in February while orders for durable goods fell 0.5 percent.

On the trading floor, Eastern Airlines was the most active NYSE-listed issue, losing 1/4 to 8 3 /8.

Navistar, formerly International Harvester, followed, rising 1 to 9 5/8. It was recommended by Sanford C. Bernstein analyst David Eisenberg, director of institutional investment for the brokerage house.

R.H. Macy was third, easing 1/2 to 64 3 /8.

Among blue chips, General Motors advanced 1 3 /8 to 86 1/8, Eastman Kodak gained 1 3 /4 to 61 5/8, American Express was down 1/2 to 65 1/2, Philip Morris fell 3 to 119, General Electric lost 5/8 to 76 1/2, AT&T eased 1/4 to 22 1/8 and U.S. Steel fell 3 /4 to 22 to 20 3 /4. India's government said it opposes Carbide's proposed $350 million settlement for damage claims resulting from the December 1984 poison gas leak in Bhopal .

In the computer sector, Digital Equipment added 1 3 /4 to 155 but IBM lost 1 to 147 7/8, Cray Research fell 2 1/2 to 65 1/4, Honeywell lost 3 /8 to 71, Prime Computer eased 1/2 to 22 5/8. Burroughs edged up to 50 3 /8, Chevron eased 1/8 to 36 7/8, Mobil dropped 3 /4 to 28 3 /4, Royal Dutch lost 7/8 to 71 1/2, Occidental Petroleum fell 3 /4 to 24. Some oil stocks gained. Phillips Petroleum edged up 1/8 to 10, Schlumberger rose 1/4 to 31 1/4 and Exxon inched up 1/8 to 55 1/8.

Ashland Oil jumped 3 3 /4 to 52. Ashland said Tuesday that the Belzberg family of Canada has purchased between 8 percent and 9 percent of its common stock and an investment broker said lower crude oil prices had made the nation's largest independent refiner an attractive takeover target.

Texaco fell 1 to 27 7/8. Pennzoil rose 3 /4 to 56. The companies have agreed to continue discussions concerning their $11.1 billion court battle.

Prices fell in active trading on the American Stock Exchange.

Wickes led the Amex actives, losing 1/4 to 6. B.A.T. Industries followed, easing 1/4 to 5 9/16. Champion Homes was third, inching down 1/8 to 2 9/16.

The American Stock Exchange lost 1.20 to 266.52. The price of an average share fell six cents. Declines outpaced advances 390-226 among the 839 issues traded. Composite volume totaled 14,583,830, compared with 15,317,600 Monday.

The National Association of Securities Dealers index of OTC stocks fell 1.39 to 369.28.