Nifty traded below the 24,150 mark. Banks, oil & gas and chemical stocks declined while pharma and heatlhcare managed to trade with some gains.

At 13:24 IST, the barometer index, the S&P BSE Sensex was down 213.51 points or 0.28% to 77,155.60. The Nifty 50 index declined 92.35 points or 0.38% to 24,126.70.

In the broader market, the BSE 150 MidCap Index fell 0.10% and the BSE 250 SmallCap Index dropped 0.32%.

The market breadth was negative. On the BSE, 1,778 shares rose and 2,358 shares fell. A total of 244 shares were unchanged.

Gainers & Losers:

Adani Enterprises (up 1.21%), Adani Ports (up 0.63%), Apollo Hospitals (up 0.57%), Eternal (up 0.56%) and ICICI Bank (up 0.55%) were the top gainers.

Grasim (down 1.93%), HCL Tech (down 1.85%), Cipla (down 1.38%), Coal India (down 1.33%) and Tata Steel (down 1.29%) were the top losers.

Stocks in Spotlight:

IIFL Finance dropped 3.58%. The company's material subsidiary IIFL Home Finance has received an assessment order raising a tax demand of Rs 963.39 crore, including surcharge and cess.

Netweb Technologies India tumbled 4.41%. The company has announced the successful completion of its qualified institutions placement (QIP) for the equity shares of the company, raising an aggregate of approximately Rs 1,200 crore from global and domestic institutional investors.

Larsen & Toubro was down 0.02%. The company announced that its renewables business vertical has secured a major order to develop three battery energy storage system (BESS) projects for a prominent client in the Middle East. As per L&T's order classification, the value of this 'major' order lies between Rs 5,000 crore to Rs 10,000 crore.

Global Market:

European equities pushed higher on Tuesday, bouncing back from recent multi-week lows as Washington's hyped "economic D-Day" against Tehran failed to materialize into immediate supply shocks, providing relief to risk assets.

On the other hand, Asian markets traded lower, tracking a mixed close on Wall Street as investors turned cautious ahead of a data-heavy week featuring Nvidia's earnings, US inflation data and Federal Reserve Chair Kevin Warsh's first Jackson Hole speech.

Wall Street ended mixed on Monday, with technology and semiconductor stocks under pressure as investors assessed fresh US economic measures against Iran. The Dow Jones Industrial Average rose 0.26%, while the S&P 500 fell 0.28% and the Nasdaq Composite declined 0.76%. Nvidia dropped 2.9%, while Micron Technology and Broadcom also fell, weighing on the technology-heavy indexes.

Investor focus also remained on Washington's escalating pressure on Tehran. US Treasury Secretary Scott Bessent outlined a tougher sanctions campaign against Iran, warning of further measures against countries and entities that continue to facilitate trade with Tehran and describing the next phase as an "economic D-Day." The latest measures are aimed at intensifying pressure on Iran's remaining economic channels, while markets are also monitoring the potential impact on oil supplies and the Strait of Hormuz.

Oil prices extended their decline on Tuesday after falling sharply in the previous session, offering some relief to bond markets. Brent crude had settled at around $92.17 a barrel on Monday, down 2.4%, as investors assessed the impact of the latest US sanctions and their potential implications for the US-Iran conflict.

US Treasury yields also eased, with the 10-year yield around 4.70% after ending the previous session near that level. The decline came after oil prices fell and investors continued to assess the outlook for inflation, government borrowing and Federal Reserve policy.

The immediate focus is likely to remain on Nvidia, which is scheduled to report its second-quarter fiscal 2027 results after the US market close on Wednesday, 26 August.

Investors will also track the US July Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, due on Wednesday. The data could influence expectations for the Fed's upcoming policy decisions.

Meanwhile, the Jackson Hole Economic Policy Symposium is scheduled for 27-29 August, with Fed Chair Kevin Warsh set to deliver his first major speech at the event on Friday, 28 August. His remarks will be closely watched for clues on the outlook for interest rates amid persistent inflation concerns and elevated Treasury yields.