Indian shares swung between gains and losses on Tuesday, after rising more than 1 percent in the previous session, as investors booked profits in recent outperformers such as ITC Ltd, although energy firms gained on lower oil prices.
Indexes had risen for three consecutive sessions as consumer goods firms rallied on hopes of reaping benefits from the Goods and Services Tax, which replaced more than a dozen federal and state levies.
"GST positivity still weighs on the market. Some traders are now looking for bargain buying, while other are booking profits after sharp gains from yesterday," said Anand James, chief market strategist at Geojit Financial Services.
The broader NSE Nifty was down 0.07 percent at 9,607.55 as of 0635 GMT while the benchmark BSE Sensex too was 0.07 percent lower at 31,199.27
Recent gainers led the declines. Cigarette maker ITC Ltd, which hit a record high and drove the markets higher on Monday, was down 0.79 percent.
The Nifty Auto index was down 0.62 percent, with Hero MotoCorp Ltd and Bajaj Auto Ltd sliding 1.7 percent and 1.05 percent respectively.
Meanwhile, commercial vehicles maker Ashok Leyland, which hit its highest in a year on Monday, was down 1.05 percent.
Among gainers, energy stocks led, with Reliance Industries Ltd and Bharat Petroleum Corp Ltd climbing more than 2 percent each after oil prices retreated, halting a straight eight-day run of gains on signs that a persistent rise in U.S. crude production is running out of steam.
The Nifty Energy index was up as much as 1.52 percent, its biggest intraday percentage gain in almost three weeks.
(Reporting by Vishal Sridhar in Bengaluru; Editing by Sunil Nair)