Benchmark indices were trading marginally lower after the slump seen on Monday. The Sensex was trading with losses of 32 points, while the Nifty was down 8 points.
Leading the set of gainers from the Sensex were stocks like ITC, Mahindra and Mahindra and Sun Pharma. Stocks that lost ground in trade were Hindalco, Larsen and Ultratech Cement. Metal stocks continued to show signs of weakness with stocks like Sesa Sterlite and Jindal Steel among the losers.
Shares in oil marketing companies were having a good session in trade with HPCL and BPCL both rallying after crude prices fell to a new 5-year low.
Mid cap stocks were also not having a good trading session with Bata India and Jubilant Foodworks among the losers.
Ranbaxy shares are up more than 3 percent to Rs 645 after CCI approved its deal with Sun Pharma.
Meanwhile, Asian markets were in the red after the US Markets closed lower following a sharp slump in crude prices. Dealers expect the markets to remain soft ahead of the year end as there could be some selling pressure from foreign funds.