The NSE Nifty declined by 74.60 points or 0.80 per cent to 9,285.30 points, while the BSE Sensex closed at 29,858.80 points - down 267.41 points or 0.89 per cent.
The BSE 30-share index rose added 82 points, or 0.3%, to touch 30,008 on sustained buying activity in early trade. It opened at 29,977.50 points, traded at 29,979.54 points (around 9.30 a.m.) from its previous close at 29,926.15 points.
The S&P 500 had ended flat on Monday after briefly touching a record high, while Wall Street's "fear gauge" dropped to its lowest in over two decades following centrist Emmanuel Macron's victory in the French presidential election.
"Appreciation of Indian rupee against the USA dollar also supported the firmness".
Foreign portfolio investors continued their selling spree and offloaded stocks worth Rs 542.47 crore yesterday, as per provisional data. Both the benchmark indices, Nifty and Sensex were trading flat throughout the day. "Aviation and media-entertainment sector stocks traded firm on strong buying support", Desai told IANS.
However, the broader markets outperformed the Sensex, with the small-cap index rising 0.53 per cent and the mid-cap index gaining 0.19 per cent. "Most pharma sector stocks witnessed good recovery from lower levels in the second half of the session and ended in green".
Major Sensex losers were: Hero MotoCorp, down 3.07 per cent at Rs 3,289.80; Lupin, down 2.25 per cent at Rs 1,250.70; Bharti Airtel, down 1.75 per cent at Rs 345.10; SBI, down 0.89 per cent at Rs 296; and Power Grid, down 0.86 per cent at Rs 208.15.
Tata companies were in focus with Tata Steel gaining 1.2%, Tata Motors 0.8% and TCS 0.5% in morning trade.