The benchmark index Sensex snapped a four-day rally and closed the session marginally lower. The sell-off in telecom, FMCG, realty, and select power, technology and auto stocks kept the Nifty below the 4,900 in the second half of trade. ONGC was also the biggest loser. However, buying in Reliance Industries, SBI, ICICI Bank, SAIL, Sterlite, TCS and Tata Motors capped the losses to some extent.

Buying was also seen in public sector enterprises as the BSE PSU Index outperformed other indices and gained 2%.

The markets started the day on a positive note following positive global cues, the US markets rallied 2% on Monday. But the markets erased early gains and consolidated in the second half of trade as traders looked cautious after strong rally in last four days. Asian markets also came off their early highs, before closing marginally higher. European markets were flat, after Monday's run up while the US index futures were marginally in the red, at the time of writing this report.

The 30-share BSE Sensex closed at 16,440.56, down 58.16 points or 0.35%,

Technical Analyst, Ashwani Gujral said couple of days of consolidation might not hurt. "If the Nifty could hold 4,850-4,860 for the next 2-3 days then one would see a further short covering and the Nifty heading above that 4,950 level. The bears would give up and then the next target woule be about 5,180. So, a couple of days of consolidation may not hurt and you will get a higher base."

Reliance Industries gained over 1.5%, as the company announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat, wherein it holds 100% participating interest.

NMDC was locked at 20% upper circuit today as well. Its volumes surged over 1600% to 1,838,473 shares, compared to its 5-day average of 106,826 shares on the news that Cabinet may take up NMDC divestment next month. The company may raise over Rs 12,000 crore by diluting the stake.

SBI and ICICI Bank continued their run-up for the second day, gained 2% and 0.8%, respectively. However, Bharti Airtel and Hero Honda plunged around 4%. ONGC, DLF, HUL, Reliance Communications and Maruti declined 2.5-3.7%.

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