Markets opened the day flat after rallying substantially in trade on Monday after the BJP performed well in the state elections.
The Sensex was trading marginally lower by 51 points, while the Nifty lost 17 points in trade. Among the early Nifty losers were Bharat Heavy, Jaiprakash Associates, Power Grid and Tata Motors.
PSU power major NTPC lost as much as 7 per cent in early trade after the CERC released new norms for generation and transmission. Banking stocks came in for some selling pressure after the spectacular rally witnessed on Monday.
Axis Bank, ICICI Bank, IndusInd Bank and Yes Bank were the losers from the private sector banking space. From the PSU banking space banks that lost ground were Bank of Baroda, Canara Bank, Union Bank and Punjab National Bank.
Venus Remedies gained as much as 5 per cent after reports that the company and Austell Lab have inked a MoU for antibiotic product Elores.
IT stocks continued to gain in trade today with Infosys, Wipro and Tata Consultancy Services trading in the green.
Other notable gainers were Bharti Airtel and Mahindra and Mahindra from the Nifty stocks. Infra and capital goods stocks which had a sharp run in the last few days saw some profit booking with notable losers being Voltas.
Meanwhile, most of the Asian markets were trading in the red led by losses in the Nikkei and the Seoul Composite. The US saw a strong closing overnight with the S&P 500 closing at a new record high of 1808 points.