About 100 demonstrators waved placards emblazoned with slogans such as 'save small retailers' and marched on government buildings to protest against the entry of the world's largest retailer to India.
Wal-Mart and Indian conglomerate Bharti Enterprises are planning a joint venture for a wholesale cash-and-carry business.
A spokesman for India FD Watch, a group that attempts to limit the growth of foreign retailers in India, said: 'About 40 million people depend on the retail sector and these people's livelihood will be ruined if Wal-Mart is permitted to enter India's retail market.'
Under foreign direct investment rules, multi-brand retailers can only enter the Indian market with a local franchise or licensing partner.
It is still unclear when the first Bharti-operated Wal-Mart store will open in India.