Among the early losers was ICICI Bank which rallied substantially in the last two days, while other notable banking losers were HDFC Bank, Kotak Mahindra Bank and Punjab National Bank.
IT stocks, however, continued to gain ground with notable gainers from the space being Tata Consultancy Services which rallied more then 1 per cent, while other gainers from the space were Tech Mahindra, Wipro and Infosys.
Nifty gainers included Jindal Steel, Larsen and Cipla.
Infrastructure and capital good stocks continued to see buying interest with Voltas jumping more then 2 per cent, Crompton Greaves gaining 2 per cent and Bhel rallying 1 per cent.
PSU Banking stocks came in for some heavy selling pressure with notable losers from the space being Canara Bank, Bank of India and Bank of Baroda.
Ranbaxy laboratories which rallied sharply on Monday saw some profit booking in the counter. The stock has rallied substantially in the last few trading sessions.
Metal stocks continued to have a good day in trade with gainers from the space being Steel Authority of India, Jindal Saw and Bhushan Steel.
Meanwhile, markets in Asia were trading lower following a bout of selling pressure across Asia after the US markets closed sharply lower.
Indian markets are likely to remain rangebound and react to data from the US, especially the US jobs report which is expected later this week and also Indian state election results.