Considering your city usage and no mention of any preference for body style between the two, we would suggest going for the Maruti Suzuki Baleno as compared to the Dzire. Both cars are spacious and have a comfortable ride quality and are similar in terms of interior quality.
But the Baleno has two key advantages. The boot space is more usable thanks to it being a hatchbcak and you can also fold the rear seat for added luggage space, which makes it more practical when you need to carry long items or want extra luggage space.
The Baleno also uses the older 1.2 litre dual jet four cylinder engine, which is smoother and more powerful than the new 1.2 litre three cylinder engine on the Dzire. If you are looking for an automatic, the AMT gearbox also works better on the Baleno.
As an alternative, you could also consider getting the Maruti Suzuki Fronx. It is slightly more expensive but gives you a more SUV-like stance with better ground clearance and added road presence, while still being easy to drive in the city.