Besides, a mixed trend in other Asian markets also influenced the trading sentiment here.

The 30-share index rose by 123.18 points, or 0.47 percent, to 26,507.25, with stocks of oil and gas, banking, PSU and power sectors leading the rise. The gauge had gained 86.69 points in Monday's volatile session.

Similarly, the National Stock Exchange index Nifty edged higher by 21.50 points, or 0.27 percent, to 7,905.75.

Shares of RIL rallied by 1.48 per cent to Rs 972 in early trade after company posted 1.7 percent rise in its second quarter net profit to Rs 5,972 crore.

Meanwhile, the retail inflation dropped to 6.46 percent in September on falling prices of fruits and vegetables, the lowest since India started computing Consumer Price Index (CPI) in January 2012.

The retail inflation was at 7.73 percent in August, revised downward from the earlier estimate of 7.8 percent.

Bucking the trend, stocks of DLF plunged by 20.48 percent, its biggest single-session fall since September 2013 after the market regulator SEBI barred the company from tapping the capital markets for three years for "active and deliberate suppression" of material information at the time of
its IPO.

Among other Asian markets, Japan's Nikkei fell 1.72 percent while Hong Kong's Hang Seng gained 0.34 percent in morning trade.

US Dow Jones Industrial Average ended 1.35 percent lower in Monday's trade.