Equity benchmark indices Sensex and Nifty ended lower on Tuesday as a fag-end sell-off wiped out early gains, with IT and power stocks playing spoilsport amid a mixed trend in global markets.

Snapping its two-day winning run, the 30-share BSE Sensex declined 188.50 points or 0.25 per cent to settle at 74,482.78. During the day, it had jumped 440.11 points or 0.58 per cent to 75,111.39.

The NSE Nifty dipped 38.55 points or 0.17 per cent to finish at 22,604.85. In the late afternoon trade, the benchmark hit its all-time peak of 22,783.35, up 139.95 points or 0.61 per cent.

From the Sensex basket, Tech Mahindra, Tata Steel, JSW Steel, HCL Technologies, Tata Consultancy Services, Larsen & Toubro and Kotak Mahindra Bank were the biggest laggards.

Mahindra & Mahindra, Power Grid, Bajaj Finance, IndusInd Bank and Maruti were the major gainers.

Also read: Rupee recovers 4 paise to 83.41 against US dollar

In Asian markets, Seoul, Tokyo and Hong Kong settled in the positive territory while Shanghai ended lower.

European markets were mostly trading lower. Wall Street ended with gains on Monday.

Global oil benchmark Brent crude climbed 0.21 per cent to $88.59 a barrel.

"Global markets remained mixed ahead of the US FED policy meeting, as markets appear to have already factored in the slim chance of a near-term rate cut. Profit booking ensued towards a close given the sharp rally in the last couple of days and a holiday-led truncated week," said Vinod Nair, Head of Research, Geojit Financial Services.

Foreign Institutional Investors (FIIs) turned buyers on Monday after continuous offloading. They bought equities worth ₹169.09 crore, according to exchange data.

In the previous session, the BSE benchmark jumped 941.12 points or 1.28 per cent to settle at 74,671.28 on Monday. The NSE Nifty went up by 223.45 points or 1 per cent to 22,643.40.

Domestic equity markets will remain closed on Wednesday on account of Maharashtra Day.