Equity benchmark Sensex jumped over 100 points in early trade on Tuesday on optimism over reopening of the economy and unabated foreign fund inflows.
The gains were, however, capped as profit-booking at higher levels restrained benchmarks from strengthening further, traders said.
After opening at 34,520.79, the 30-share index turned choppy. It was trading 59.04 points, or 0.17%, lower at 34,311.54.
Similarly, NSE Nifty slipped 17.55 points, or 0.17%, to 10,149.90.
HDFC Bank was the top laggard in the Sensex pack, falling around 2%, followed by M&M, Maruti, Bajaj Finance, SBI, Reliance Industries and ICICI Bank.
On the other hand, Sun Pharma, Asian Paints and ITC were among the gainers.
In the previous session, the BSE barometer settled 83.34 points, or 0.24%, higher at 34,370.58, and the broader Nifty closed 25.30 points, or 0.25%, up at 10,167.45.
On a net basis, foreign institutional investors bought equities worth ₹813.27 crore in the capital market on Monday, provisional exchange data showed.
According to analysts, market opened with a positive bias due to fresh fund inflows through foreign direct investment (FDI) and foreign portfolio investors (FPIs), and a general optimism emanating from the benefits of the reversal of the lockdown.
On the global front, bourses in Shanghai and Hong Kong were trading with gains, while those in Seoul and Tokyo were in the red.
Stock exchanges on Wall Street ended on a positive note in overnight trade.
International oil benchmark Brent crude futures rose 0.91% to $41.17 per barrel.