Investors remained cautious about further earnings season after muted numbers by IT companies.
Equity benchmarks closed the rangebound session on a flat note after a sell-off seen in previous session. Investors remained cautious after International Monetary Fund trimmed India's annual economic growth forecast, and awaited more corporate results after muted start to earnings season by IT companies.
The 30-share BSE Sensex was up 17.47 points at 29,336.57 while the 50-share NSE Nifty declined 1.65 points to 9,103.50 amid mixed global cues.
"We are not seeing any major fall in Nifty from the current level but it might take some time to regain the upward momentum," says Jayant Manglik of Religare Securities.
Volatility is tough to handle at present, hence he suggests maintaining hedged positions until Nifty resumes its trend.
However, the broader markets outperformed benchmarks on positive breadth. The BSE Midcap and Smallcap indices gained 0.7 percent each as about four shares advanced for every three shares falling on the exchange.
Meanwhile, the International Monetary Fund on Tuesday trimmed India's annual growth forecast by 0.4 percentage points to 7.2 percent for 2017, citing the impact of demonetisation. However, medium-term growth prospects are favourable, with growth forecast to rise to about eight percent over the medium term due to the implementation of key reforms, loosening of supply-side bottlenecks, and appropriate fiscal and monetary policies, it said.
IndusInd Bank share price fell 0.6 percent after lower-than-expected Q4 profit growth due to nearly 100 percent increase in provisions despite stable asset quality. Profit grew by 21 percent YoY.
After its earnings, share prices of country's largest lenders SBI and ICICI Bank were down 2 percent and 0.72 percent, respectively. The Nifty Bank lost half a percent and PSU Bank shed 1.4 percent.
Yes Bank ended flat ahead of Q4 earnings that announced after market hours. Profit (up 30 percent YoY) was ahead of estimates but the growth restricted by higher provisions and bad asset quality performance.
Technology stocks were under pressure after the US President Donald Trump signed an executive order for a review of the H-1B visa programme, saying they should never be used to replace American workers.
Muted earnings by TCS also dented sentiment, though company's MD & CEO, Rajesh Gopinathan sees less impact of H1-B visa issue on FY18. TCS and Infosys declined over 0.3 percent each while Wipro gained 0.8 percent.
Coal India gained more than a percent as Motilal Oswal has upgraded the stock to buy with increased target price at Rs 335 (implying 20 percent upside), citing strong earnings growth and attractive dividend yield.
Bharti Infratel share price rose 2 percent as sources told CNBC-TV18 that KKR and CPPIB are in talks to buy additional 11.3 percent stake in the company.
Among other largecaps, HUL, ONGC, Hero Motocorp and Dr Reddy's Labs were losers whereas HDFC, Maruti Suzuki, NTPC, Adani Ports and BHEL gained 0.7-2 percent.
Jain Irrigation gained 8 percent as the company will acquire 80 percent stake in US companies, Agri-Valley, Irrigation Design & Construction. Sun TV Network was up 5.5 percent after Edelweiss has maintained its buy call on the stock as Arasu bagged long-awaited digital licence.
Mangalam Drugs surged 10 percent as ICICIdirect advised buying the stock that has 45-50 percent potential upside.On the global front, European markets were mixed as investors digested news of snap elections in the UK and fresh earnings reports. Asia mostly ended lower.