@Krishnavamshi24: You should read the threads on
New car vs. used car (ARTICLE: Buying a New Car vs Used Car) thread for some advise on how to decide.
In my personal opinion...i would suggest you to go for India Xeta(New Car) since it is available with-in reach of your budget and will have the benefits of new car eg. Warranty, feel of the new car etc. IMO Indica is good car and is in no way inferior to Santro or WagonR. If you like it, then definetly go for it.
In-case you are not very convinced about Indica Xeta then you can think about other second hand cars.
You did not answer my question yet: Did you drive the Santro and WangonR? Do feel comfortable driving them (leg room, head room, shoulder room, rear seat comfort for other passenger's etc)?
What is your budget for maintenance of the car? I mean if you want to go for second hand car...this factor will be very important while choosing the car.
-Vaspro
PS: I have asked my friends in Hyd for the used car dealer's details. I will PM you as soon as i get details.