Motilal Oswal in its daily Market Outlook report said, "Nifty index managed to hold 9980-10000 zones and witnessed a sharp recovery from lower levels led by short covering activities in last one hour of the session".
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,341.05 points, traded at 32,096.14 points - down 177.53 points, or 0.55 per cent - from its previous close at 32,273.67 points. But, soon the bourses slipped into the red with Sensex losing as much as 358.47 points to hit the day-low of 31,915.20 in intra-day trade.
Market breadth was in the favour of losers, with about 2 stocks declining to every 1 stock that advanced. Tata Steel's better-than-expected first quarter earnings, intense buying of shares of companies such as Hindustan Aluminium, Nalco and Vedanta, and a rise in auto, healthcare and IT stocks also contributed to the early gains.
The Bombay Stock Exchange Sensex ended 259.48 points down to 32,014.19, and the National Stock Exchange Nifty dropped 78.85 points to 9,978.55 on Tuesday, after days of staying above the 10,000 mark.
"Market sentiment was also impacted after market regulator Sebi yesterday, 7 August 2017 imposed trading restrictions on 162 listed entities identified as shell companies".
Indian currency, Rupee opened at 63.73 as against US Dollar.
Indian equities continued to decline for the second day on Tuesday. Investors booked profit in recent out-performers.