Benchmark indices opened the day flat, even as Asian markets saw some recovery in early morning trade.
Strong closings across Europe and the US markets on Monday bolstered stocks across Asia, though stocks in India saw some profit booking. In fact, the German DAX, French CAC and the UK's FTSE all jumped 3 per cent in trade on Monday.
Leading the set of losers from the Nifty were stocks like Bharti Airtel, Ultratech Cement and Idea Cellular.
Shares in Software companies lost ground after the rupee gained against the US dollar. Infosys, TCS and Wipro were among the early losers in trade.
Reliance Communications gained ground after reports of talks with Aircel which will be extended for another two weeks.
Shares in government owned banks were once again having a solid trading session with PNB Andhra Bank and Canara Bank among the top gainers in trade.
Shares in Tata Motors lost ground after reports that a Brexit may hit the JLR operations which contributes almost 90 per cent to profits of the company.
Meanwhile, the currency rupee opened at 67.39 to the US dollar, after seeing a huge drop on Monday, following the decision by RBI governor Raghuram,Rajan not to seek a second term.