The BSE building in Mumbai.
Credit: PTI File Photo
Equity benchmark indices turned flat after beginning the trade on a positive note early on Tuesday amid a weak trend in the Asian markets.
The 30-share BSE Sensex climbed 128.88 points to 81,178.88 in early trade, while the NSE Nifty went up 43.35 points to 24,839.10.
Later, both the benchmark indices faced volatility and were trading with marginal gains.
From the Sensex pack, Adani Ports & Special Economic Zones, NTPC, UltraTech Cements, Hindustan Unilever, HDFC Bank, State Bank of India, and Larsen & Toubro were among the major gainers.
Tata Steel, JSW Steel, Tata Motors, HCL Technologies, and Tata Consultancy Services were among the laggards.
"Market has turned weak responding to negative cues from escalating geopolitical tensions in the Middle East, massive FPI selling and concerns surrounding the election results due on Monday," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,293.41 crore on Monday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 13,245.12 crore, according to exchange data.
The net FPI selling of Rs 50,011 crore during the last six trading sessions has been more than offset by the DII buying of Rs 53,203 crore, Vijayakumar said.
There are enough indicators to show that FPIs have been following a 'Sell India, Buy China' strategy. Elevated valuations in India and cheap valuations for Chinese stocks triggered this change in FPI strategy, he added.
In Asian markets, Tokyo, Hong Kong, Seoul are trading lower, while Shanghai is quoting in the green.
The US markets ended in the negative territory on Monday.
Global oil benchmark Brent Crude fell 1.42 per cent to USD 79.78 a barrel. On Monday, Brent Crude soared above USD 80 a barrel -- its highest price since August.
Extending the losses for the sixth straight session on Monday, the BSE Sensex tumbled 638.45 points, or 0.78 per cent, to settle at 81,050. The NSE Nifty slumped 218.85 points, or 0.87 per cent, to end at 24,795.75.