Stock market benchmark indices ended lower on Tuesday due to fag-end selling in blue-chip stocks HDFC Bank and Reliance Industries, as concerns rose over the rupee hitting a new record low.
Elevated global crude prices amid geopolitical uncertainties also impacted market sentiment.
Markets pared all intraday gains and ended lower, with the 30-share BSE Sensex declining 114.19 points, or 0.15 per cent, to settle at 75,200.85.
During the day, it surged 431.23 points, or 0.57 per cent, to 75,746.27 after US President Donald Trump said he had halted fresh strikes on Iran at the request of Qatar, Saudi Arabia and the UAE, asserting that serious discussions were underway with Tehran that could lead to an acceptable deal.
The 50-share NSE Nifty dipped 31.95 points, or 0.14 per cent, to end at 23,618.
From the Sensex firms, Kotak Mahindra Bank, UltraTech Cement, Titan, Adani Ports, Bharti Airtel and Sun Pharma were among the biggest laggards.
Infosys, HCL Tech, Tech Mahindra, Eternal and Tata Consultancy Services were among the major winners.
The rupee slipped to a record low of 96.60 against the US dollar before settling at 96.52 (provisional) on Tuesday.
Brent crude, the global oil benchmark, traded 1.80 per cent lower at USD 110 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 2,813.69 crore on Monday, according to exchange data.
The majority of Adani group stocks ended higher after the US Department of Justice permanently dropped all criminal charges against business tycoon Gautam Adani and his nephew Sagar, bringing a high-profile securities and wire fraud case in New York to a complete close after prosecutors concluded they could not sustain the allegations.
"Domestic equity indices pared early gains to close in the red, despite an initial upswing fuelled by optimism surrounding a temporary halt in US military operations against Iran.
"IT stocks stood as a notable exception, registering robust advances on the back of anticipated tailwinds from an accelerating rupee depreciation and compelling valuations," Vinod Nair, Head of Research, Geojit Investments Limited, said.
In Asian markets, South Korea's benchmark Kospi and Japan's Nikkei 225 index ended lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled higher.
Markets in Europe were trading in positive territory.
"Despite a powerful rally in IT stocks and supportive global cues during the first half, benchmark indices failed to sustain higher levels as rising currency concerns, elevated crude oil prices, and aggressive derivative unwinding dragged the market lower into the close," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
The biggest pressure point remained the continued collapse in the Indian rupee alongside persistently elevated crude oil prices, he added.
US markets ended on a mixed note on Monday.
Trump had made the announcement on Truth Social on Monday late afternoon.
"I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow (Tuesday)," Trump said.
"We were getting ready to do a very major attack tomorrow. I've put it off for a little while, hopefully, maybe forever, but possibly for a little while, because we've had very big discussions with Iran and we'll see what they amount to," Trump told reporters at the White House.
In the previous session on Monday, the BSE benchmark increased by 77.05 points, or 0.10 per cent, to settle at 75,315.04. The Nifty edged higher by 6.45 points, or 0.03 per cent, to end at 23,649.95.
Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.
