A U.S.-China Trade war undoubtedly presents opportunities for India's job-led manufacturing sector, but a conducive policy environment and synchronized U.S.-India agenda will determine the likelihood of these opportunities.

The domestic currency hit an intra day high of 71.86 - a fresh two-month high-in the forex market compared to its previous close of 72.31 to the US dollar.

Oil prices were seen climbing to $100 per barrel when sanctions on Iran's oil and gas sector came into effect on November 5. But prices have reversed direction during the last 12 straight days.

Oil prices posted the deepest plunge in more than three years in the international market. Brent crude, used to price international oils, dropped to $65.17 a barrel. Oil has now fallen roughly 30 percent for 12 straight days, driven by worries over rising oil production around the world and weakening demand from developing countries, with expectations for increased supply from the US and OPEC.

Brent crude prices were trading at $68.15 per barrel, down 2.08% from their previous close. Benchmark US crude fell 78 cents to $59.15 per barrel in electronic trading on the New York Mercantile Exchange. The contract sank 26 cents on Monday to $59.93.

While the SpiceJet stock fell up to 4.12%, InterGlobe Aviation declined up to 4.43%.  The Jet Airways stock too lost 6.54% on the BSE.

Overall exports in September contracted by 2.15 per cent to $27.95 billion primarily due to high base effect last year, but healthy order books indicate better export growth in coming months.