L&T was the top loser in the Sensex pack, shedding around 1%.
Equity benchmark Sensex tumbled over 100 points in early trade on July 23, tracking losses in index majors HDFC Bank, ICICI Bank and L&T amid sustained foreign fund outflow.
After opening over 150 points higher, the 30-share BSE index pared all gains to trade 141.67 points or 0.27% lower at 52,695.54 in initial deals, while the broader NSE Nifty declined 42.05 points or 0.27% to 15,782.
L&T was the top loser in the Sensex pack, shedding around 1%, followed by Sun Pharma, Bajaj Finance, HDFC Bank and Kotak Bank.
On the other hand, HCL Tech, UltraTech Cement, Tata Steel, Titan and Maruti were among the gainers.
In the previous session, Sensex ended 638.70 points or 1.22% higher at 52,837.21, while Nifty surged 191.95 points or 1.23% to 15,824.05.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth ₹247.59 crore on July 22, as per provisional exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, a sharp recovery in global markets propelled domestic equities to see sharp rebound on Thursday, while concerns over global growth due to recent rise in delta variants of coronavirus cases in different parts of the world continues to persist.
“However, we continue to believe that the underlying strength of the domestic market remains intact,” he said.
On the global front, U.S. equities extended gains for the third consecutive day despite weak employment data as investors focused on strong report cards of corporate earnings, he added.
Elsewhere in Asia, bourses in Shanghai and Hong Kong were in the red, Seoul and Tokyo were trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude declined 0.33% to $73.55 per barrel.