Market observers said the losses were trimmed by good buying in stocks of banking majors like State Bank of India and Kotak Bank, and index heavyweights like Reliance Industries. At the close, the benchmark 30-share index, BSE Sensex lost 67.28 or 0.20% at 32,802.44 with 23 components posting drop. while the broad based NSE Nifty closed flat with a decline of 9.50 points or 0.09%, at 10,118.25 with 37 components registering drop.
Market breadth was negative with 1,027 advances against 1,419 declines. The RBI's two-day monetary policy review kicks off today and the decision is due tomorrow. However, profit-booking in banking and auto stocks capped gains.
Globally, Asian stocks closed broadly lower after oil prices fell over 1 percent overnight and Brexit talks did not yield a breakthrough on the withdrawal issues.
Meanwhile, the Indian rupee opens higher at 64.30 per dollar against Monday's close of 64.37.
At 12.30 PM: Sensex was down by over 110 points or 0.34% to 32,759.48 while the wider Nifty was dpwn by over 31 points or 0.31% to 10,096.40.
Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,470.56 crore while domestic institutional investors bought stocks worth Rs 1,074.39 crore.
HPCL, BPCL, Infosys, Sun Pharma and UltraTech Cement gained the most on Nifty50.
The Sensex touched a high of 32,893.05 points and a low of 32,682.52 during the intra-day trade.