Equity benchmark Sensex snapped its two-day rally on Tuesday as investors including index heavyweights HDFC twins and Reliance Industries cashed in gains in spite of firm global cues and decreasing Covid-19 cases.

The 30-share gauge settled 14.37 points or 0.03 per cent lower at 50,637.53, while the broader NSE Nifty inched up 10.75 points or 0.07 per cent to 15,208.45.

HDFC Bank was the top loser among the Sensex constituents, dropping 2.02 per cent, followed by Axis Bank, Reliance Industries, IndusInd Bank, HDFC and ITC, while Asian Paints jumped by a rate of 3.38 per cent.

Titan, Bajaj Finserv, ONGC, TCS, Infosys and Power Grid were among the other major winners.

The market breadth was positive, as 21 stocks advanced while 9 closed in the red in the 30-share pack.

"Domestic equities traded in a range. While BFSIs witnessed some profit-booking after sharp recovery recorded in last couple of trading days, others traded positively," said Binod Modi, Head Strategy at Reliance Securities.

Metal stocks marked a notable recovery as sharp correction in the last two days brought back investor interest. Metal companies had reported robust earnings in the fourth quarter of 2020-21 and established healthy guidance for the ensuing quarters, he added.

Modi, however, noted that participants would persist focusing on the trajectory of daily Covid-19 cases and vaccination ramp up in the country in the near term, and the possible lifting of restrictions in a phased manner by states from next week should boost the market mood.

The daily count of Covid-19 cases in the country fell below the 2-lakh mark after over a month at 1,96,427, while the death toll also slipped to the lowest in 21 days at 3,511, according to the Union Health Ministry data updated on Tuesday.

Sector-wise, BSE consumer durables, IT, teck, metal, auto and FMCG were among the gainers, while power, energy, finance and bankex ended in the red.

Broader BSE midcap index fell 0.31 per cent, while the small--cap gauge rose 0.26 per cent.

The rupee strengthened by 19 paise to end at 72.77 against the US dollar on Tuesday, tracking weakness in the American currency in the overseas market.

"The Indian Rupee appreciated on the back of weakness in dollar. Dollar slipped amid decline in US treasury yields, rise in risk appetite in the global markets and expectation of poor economic data from the US.

"Expectation of strong global economic growth supported risky currencies," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

With Tuesday's gain, the rupee has approached its March highs as a slowdown in coronavirus infections gives hope for opening of economy.

Meanwhile, world stocks hiked after the US Federal Reserve reiterated its stance amid receding fears of runaway inflation, while encouraging macroeconomic data from EU also bolstered sentiment.

In Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a positive note.

Equities in Europe were largely trading with gains in mid-session deals.