Dalal Street saw a choppy session as the consolidation phase kicked in once again, following a smart rally in the previous week. The 30-share Sensex eked out 100 points, while Nifty 50 hovered close to the flatline as investors remained cautious.

At close, the Sensex was up 90.83 points or 0.11 percent at 83,697.29, and the Nifty was up 24.75 points or 0.10 percent at 25,541.80. About 1,971 shares advanced, 1,889 shares declined, and 150 shares unchanged.

Uncertainty around the ongoing India-US trade negotiations weighed on sentiment, with talks reportedly at a “sensitive stage." Sources indicated that failure to strike a deal could trigger a 26 percent tariff, raising concerns.

Markets saw a mixed sectoral trend on Tuesday. PSU banks rose 0.7 percent, leading the gainers, followed by infra and metals. On the flip side, media stocks fell 1.5 percent, while FMCG, IT, and auto also traded lower.

Public sector banking stocks extended gains from the previous session after the Finance Ministry directed state-owned lenders to monetise their stakes in subsidiaries via IPOs or strategic stake sales.

The broader markets also traded cautiously, with the Nifty Midcap 100 and Nifty Smallcap 100 shifting between gains and losses. Earlier in the session, the Nifty Smallcap and Midcap indices slipped around 0.3 percent each in the afternoon.

This pullback follows a sharp rally in recent sessions, during which the market capitalization of the midcap and smallcap indices soared by Rs 2.45 lakh crore and Rs 3.41 lakh crore, respectively, over just seven trading days.

The weakening US dollar, primarily attributed to escalating concerns over America's mounting debt burden and fiscal sustainability, is creating additional incentives for USD-based investors to explore offshore opportunities.

On the sectoral front, FMCG, media, power shed between 0.4-1.3 percent, while PSU Bank index was up 0.7 percent and Consumer Durables index rose 0.4 percent.

Apollo Hospitals, Bharat Electronics, Reliance Industries, SBI Life Insurance, Asian Paints were among major gainers on the Nifty, while losers included Axis Bank, Nestle, Shriram Finance, Eternal, Trent.

In stock specific action, Sigachi Industries shares plunged 5%, extending losses to 2nd day after reactor blast kills 34 at Telangana plant, Gabriel India shares rose 20% on restructuring plan, Kalpataru Projects shares gained 2% on orders win worth Rs 989 crore, Dixon Technologies shares sank after Morgan Stanley's downgrade, Karur Vysya Bank shares gained 2 percent after Q1 deposits, advances rose 15%.

More than 150 stocks on the BSE touched their 52-week highs, including JK Lakshmi Cement, Endurance Technoogies, City Union Bank, Apollo Hospitals, Federal Bank, Bharat Electronics, Laurus Labs, AU Small Finance Bank, Deepak Fertilisers, Navin Fluorine, Aditya Birla Capital, MCX India, Hyundai Moto, LT Finance, Ramco Cements, Max Healthcare, Max Financial, Interglobe Aviation, Poonawalla Fincorp, among others.