The S&P BSE Sensex and NSE Nifty 50 Indexes were swinging in gains and losses as losses in Hero MooCorp, Vedanta, Yes Bank, Tech Mahindra, Bajaj Auto and Axis Bank were offset by buying in ICICI Bank, HDFC Bank, TCS and Infosys. The benchmarks opened higher with the Sensex advancing as much as 264 points and the Nifty moving above important psychological level of 11,200 but gave up gains in late morning trades as auto, realty and consumer discretionary goods & services shares came under selling pressure. In Monday's trading session, the Sensex and Nifty resumed decline after a day's pause in the Friday's session.

As of 12:06 pm, the Sensex traded 0.23 per cent or 86 points higher at 37,770 and the NSE Nifty 50 Index advanced 0.16 per cent or 18 points to 11,207.

The foreign investors continue to sell shares in the Indian equity markets after the Budget proposed higher taxes for super rich including trusts and association of persons, a route preferred by foreign portfolio investors to invest in Indian markets.

The foreign investors since Budget have sold shares worth Rs 7,103 crore till yesterday's session, data compiled NSDL showed.

Hero MotoCorp was top loser in the Nifty 50 basket of shares, the stock fell over 3 per cent to Rs 2,325 ahead of its June quarter earnings due later in the day.

Bharti Infratel, Vedanta, Yes Bank, Grasim Industries, Bajaj Aito, Tech Mahindra, Tata Steel and Indian Oil also fell between 1 and 3 per cent each.

On the flipside, Bhati Airtel, Indiabulls Housing Finance, ICICI Bank, Larsen & Toubro, Bajaj Finserv, HDFC Bank, Sun Pharma and TCS were also among the gainers.

Shares of Coffee Day Enterprises and SICAL Logistics plunged 20 per cent each on Tuesday, a day after their promoter VG Siddhartha went missing. Coffee Day Enterprises said in an exchange filing on Tuesday that its chairman and managing director is "not reachable since yesterday evening". On the BSE, Coffee Day Enterprises and SICAL Logistics shares fell by the daily maximum limit of 20 per cent each to Rs. 154.05 and Rs. 72.80 respectively. "We are taking the help of concerned authorities. Company is professionally managed and led by competent leadership team, which will ensure continuity of business," Coffee Day Enterprises said on Tuesday.

Seven of 11 sector gauges compiled by National Stock Exchange were trading lower led by the Nifty PSU Bank Index's 1.3 per cent decline. Media, Auto, Metal and Realty sector gauges were also trading lower between 0.75 and 0.9 per cent each.

On the other hand, Nifty Pharma Index was top gainer, up 0.7 per cent.

Mid- and small-cap shares were also witnessing selling pressure as Nifty Midcap 100 Index declined 0.4 per cent and the Nifty Smallcap 100 Index fell 0.9 per cent.

The overall market breadth was negative as 1,156 shares were trading lower while 504 were advancing on the NSE.