Infosys, TCS, HUL and Reliance Industries were the top gainers of the day.
The 50-share NSE Nifty slipped below the 8,200-mark to touch a low of 8,154.45, but settled at 8,170.80, down 90.95 points, or 1.10 per cent
The broader markets ended mixed with mid-caps gaining 0.1 per cent and small-caps falling 0.1 per cent on the BSE.
Sustained FII inflows and fresh spell of buying by domestic institutional investors fuelled the rally
Investor sentiments remained upbeat tracking global developments as the US, China geared up for trade talks due this week.
The 50-stock NSE barometer Nifty finished 22.50 points, or 0.21 per cent, down at 10,526.20
Market breadth depicted strength. There were almost 3 gainers against every loser on BSE
The NSE Nifty cracked below the 10,800-mark to hit a low of 10,753.05 intra-day, before closing at 10,762.45 with a loss of 59.40 points, or 0.55 per cent.
The broader NSE Nifty slipped below the 10,500-mark by falling 103 points, or 0.97 per cent, at 10,482.20. It touched a high of 10,645.50 and a low of 10,464.05 during the day.
Among Sensex shares, HDFC Bank fell the most by 2.58 per cent, followed by SBI (2.12 per cent), HDFC (2.09 per cent), and IndusInd Bank (2.02 per cent). Axis Bank, Bajaj Finserv, M&M, L&T, Reliance, Infosys and TCS were among the major losers. In contrast, Tata Motors, Maruti, NTPC, Sun Pharma, Power Grid and Titan were among the gainers.
Fresh buying by domestic institutional investors and better-than-expected June quarter results from some blue-chip companies boosted investor sentiment
Equity benchmarks erased early gains after realty, capital goods, teck, auto, PSU, IT, power and bankex counters came under selling pressure, falling up to 1.28 per cent.
The 30-share Sensex ended down 245 points at 28,799 and the 50-share Nifty closed down 81 points at 8,750
It was the second straight week of gains for the benchmarks.
Sensex ended at 26,272 up 125 points and Nifty ended at 7,831 up by 35 points.
Rate-sensitive sectors like banks, realty and auto witnessed heavy selling pressure ahead of the RBI Monetary policy which is scheduled on September 29.
The NSE Nifty too recovered over 100 points, or 0.96 per cent, to end at 10,576.85.
Coal India topped the losers' list in the Sensex pack on Tuesday, falling 2.36 per cent, followed by Bharti Airtel at 2.16 per cent.
A declining rupee, elevated crude oil prices and sustained foreign fund outflows added to the gloom
The US FOMC concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today.
In India, however, the Nifty continues to climb a wall of worry as general elections loom, fiscal deficit surges and the current account deficit is barely under control following subdued gold and crude prices, says Sonali Ranade.
IIP for November 2015 and CPI for December 2015 will be announced today.
The market breadth, indicating the overall health of the market, turned negative from positive
Construction major L&T was the biggest gainer among the Sensex components, spurting 2.30 per cent, after the company said its board has approved a Rs 9,000-crore share buyback plan.
Markets closed in the red on domestic worries.
A recovery in rupee, buying by domestic institutional investors, encouraging earnings by select blue-chips and stock specific buying helped the market get back on its feet
Metal stocks lose ground with Hindalco, Tata Steel, Sesa Sterlite down 4-10%.
The 50-share NSE Nifty gained 53.30 points or 0.61 per cent to 8,778.
Sun Pharma was by far the biggest gainer in the Sensex pack, surging 8.13 per cent, followed by Dr Reddy's at 4.92 per cent.
Bajaj Auto was the top gainer in the Sensex pack, surging 3.95 per cent followed by Maruti Suzuki at 2.69 per cent.
Investors lost around Rs 1.57 lakh crore in market valuation on Friday.
Japan's Nikkei fell 0.5% and South Korea's Kospi lost 1.3%.
Accommodative monetary policy has driven a bull market in stocks in recent years, but the Bank of England is expected to raise interest rates early next year and the U.S. Federal Reserve not long after, tempering future gains.
Sector-wise, banking, IT, pharma and realty indices drove the market momentum.
Muted global trend after a report that US President Donald Trump was preparing to impose more tariffs on China hurt trading sentiments.
The 30-share Sensex ended down 159 points at 27,425 and the 50-share Nifty closed down 24 points at 8,299.
The laggards in the Sensex kitty were Vedanta, Tata Steel, M&M, HCL Tech, Bharti Airtel, Maruti Suzuki, L&T, Asian Paint and HDFC
Markets opened marginally higher helped by a rebound in index heavyweights
China's malfunctioning stock markets remained semi-frozen.
Lupin was the top gainer after the USFDA cleared its Goa facility