Top losers in the Sensex pack in early trade included Yes Bank, TCS, Tech Mahindra, PowerGrid, Infosys, Axis Bank, ITC and IndusInd Bank, falling up to 2.22 per cent.
Among the Sensex stocks, HDFC emerged as the top gainer, rising by 2.06 per cent, followed by Axis Bank, Maruti, Reliance, Power Grid and Tata Steel.
The 30-share index was trading 73.38 points or 0.18 per cent lower at 40,371.77 in morning trade; while the broader Nifty was trading 26.10 points or 0.22 per cent down at 11,895.40.
The index finally settled at 40,445.15, down 334.44 points or 0.82 per cent. Likewise, the 50-share Nifty shed 96.90 points or 0.81 per cent to settle at 11,921.50.
The BSE gauge Sensex moved 103.13 points higher to trade at 40,882.72 in opening deals; while the NSE barometer Nifty added 22.50 points to 12,040.90.
The Sensex gains were driven by heavyweight Reliance Industries, followed by automakers like Heromoto Corp and Tata Motors.
The 50-scrip NSE Nifty closed 43.10 points or 0.36 per cent higher at 12,037.30. Among the Sensex stocks, Tata Motors emerged as the top gainer, rising by 7 per cent.
Exchange data showed foreign institutional investors (FIIs) sold equities worth Rs 1,131.12 crore on Tuesday.
Bajaj Auto, TCS, Kotak Bank, Infosys and HDFC were among the major gainers on Tuesday.
Traders said that the fresh trade war tensions along with unabated foreign fund outflows weighed heavily on the market sentiments.
On the Sensex, Bharti Airtel emerged as the biggest gainer, followed by Reliance, Asian Paints, Kotak Bank and IndusInd Bank, rising up to 4.17 per cent.
While shares of Vodafone Idea were trading at Rs 8.38, up 22.69 per cent on the BSE, Bharti Airtel appreciated 7.35 per cent to trade at Rs 474.80.
Bharti Airtel emerged as the top gainer by surging 7.92 per cent after it announced to hike tariffs from December, followed by Reliance, Tata Motors, HUL, IndusInd Bank Axis Bank, Infosys and TCS.
The m-cap of SBI jumped Rs 11,334.26 crore to Rs 3,05,087.85 crore, becoming the top gainer among the ten most valuable companies.
While the stock settled 3.85 per cent up at 81 paise on the BSE, the scrip advanced 5.26 per cent to Re 1 on the NSE.