After yesterday's rally, the market continued their good form to trade in the green on Tuesday morning but thereafter slipped into red after the first hour of trade. Equities were under sharp selling pressure after the rally of last week.
The Sensex ended with a loss of 108 points or 0.49 per cent at 21,826.42 while the Nifty was down 25.35 points or 0.39 per cent at 6,511.90.
India Volatility Index finished down 2.54 per cent at 17.32.
All the broader BSE indices except Small Cap ended in the red.
Among the BSE sectoral indices, Realty, IT and Power finished in the green. Metals was the worst performing sector with its sectoral index losing 3.44 per cent.
Tata Power (+4.12%) gained the most in the Sensex 30. ONGC, HUL, Tata Motors and BHEL were the other notable gainers.
Losers included Tata Steel (-5.52%), Hindalco (-3.69%), SSLT (-3.63%), Maruti (-2.67%) and Sun Pharma (-2.63%).
The Nifty opened a marginal 0.1 points up at 6,537.25 while the Sensex opened 16 points lower to open at 21,919. Later, both indices shed early gains to trade in the negative.
According to a report by India Infoline Research, the outlook is a flat start. "US indices were lower, weighed down by weak China data and Boeing's latest production setback. The Dow fell 34.04 points or 0.21 per cent, to 16,418.68, while S&P 500 lost 0.87 points or 0.05 per cent, to 1,877.17 and the Nasdaq Composite dropped 1.775 points or 0.04 per cent, to 4,334.448," the report added.
European indices FTSE-100, DAX were in the red, while CAC-40 was in the green.