The BSE Sensex was trading 11.68 points or 0.03 per cent lower at 38,927.54 in the early session and settled at 38.585.35 after dropping 354 points. The gauge had settled 238.69 points, or 0.62 per cent, higher at 38,939.22 in its previous session.
The NSE Nifty was trading flat at 11,671.70 in early session and also plunged 88 points to end at 11,584.
HDFC Bank lost 2.07 per cent, while HDFC slumped 1.96 per cent. The HDFC duo collectively accounted for almost half of the Sensex’s 354-point loss.
Other top losers in the Sensex pack included Bharti Airtel, Asian Paints, TCS, HCL Tech, Tata Steel, SBI, IndusInd Bank and Hero MotoCorp, declining up to 3.28 per cent.
While, Tata Motors, HUL, Kotak Bank, Coal India, Sun Pharma, M&M, Bajaj Auto and ONGC were the gainers, rising up to 4.68 per cent.
According to traders, market sentiment turned weak after the International Monetary Fund (IMF), in its World Economic Outlook (WEO), once again downgraded global growth forecast to 3.3 per cent for 2019.
The quarterly report “projects a slowdown in growth in 2019 for 70 per cent of the world economy,” IMF chief economist Gita Gopinath said in a statement.
As per IMF, while world growth is expected to pick up in the second half of this year and hit 3.6 per cent in 2020, many things will have to go right for that to happen, including a resolution of President Donald Trump’s trade battle with China.
Elsewhere in Asia, benchmark equity indices in Shanghai, Tokyo and Seoul were trading in the negative terrain in early trade. Indices on Wall Street too ended in the red on Tuesday.
Meanwhile, foreign institutional investors (FIIs) purchased equity worth Rs 1,212.35 crore on Tuesday, while domestic institutional investors (DIIs) sold shares to the tune of Rs 688.65 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, markets in Japan, China and Korea ended on a mixed note. In Europe, bourses in Germany, France and UK were trading in the positive terrain in early deals. The benchmark Brent crude futures rose 0.67 per cent to USD 71.08 per barrel.
Meanwhile, the rupee appreciated 12 paise to 69.18 against the US dollar intra-day.
(With inputs from PTI)