In morning session on Sensex, the laggards that dragged the key indices down were Bharti Airtel, Coal India, NTPC, Kotak Bank, HUL, Bajaj Finance, RIL, PowerGrid, HDFC Bank, Infosys, HCL Tech, Asian Paint, ONGC, TCS, SBI, M&M, HDFC, Tata Steel and IndusInd Bank, falling up to 2.48 per cent

The benchmark BSE index opened higher at 36,279.63 and advanced to hit a high of 36,375.80 on the back of positive macroeconomic data as retail inflation fell to a 19-month low on continued decline in food prices and positive cues from other Asian markets.

The 30-share barometer was trading higher by 169.36 points, or 0.47 per cent, at 36,322.97. The gauge had lost over 720 points in the previous four days.

Tepid earnings by some more companies and foreign fund outflows also dampened trading sentiments, brokers said. After opening on a positive note, the BSE Sensex advanced to hit an intraday high of 36,465.40 points in opening trade, driven by a firming trend at other Asian markets.

While the Sensex fell 222 points to 36,324 with 21 components in the red, the Nifty lost 83 points to 10,859. Tata Steel (1.31%), Kotak Bank (0.80%) and Infosys (0.63%) were the top Sensex gainers. Top Sensex losers were M&M (1.61%), ONGC (1.12%) and Hero MotoCorp (0.28%).

The 30-share index cracked 424.61 points, or 1.15 per cent, to finish at 36,546.48, while the broader NSE Nifty slumped 125.80 points, or 1.14 per cent to 10,943.60. Sudden selling in metal and auto counters led to a sharp drop at the fag end of the session, traders said.

Of 30 Sensex stocks, 27 were trading in the red. Tata Motors (18.10%), Vedanta Ltd (3.67%) and L&T (2.44%) were the top Sensex losers.

Rate-sensitive stocks swung between gains and losses after the rate-cut announcement, with BSE realty index slipping 0.02 per cent, Bankex gaining 0.04 per cent and auto index soaring 1.77 per cent.

The 30-share index was trading 161.53 points, or 0.44 per cent, higher at 37,136.76. Similarly, the 50-share NSE Nifty rose 33.05 points, or 0.30 per cent to 11,095.50.

Analysts said investor sentiment was bullish ahead of the Reserve Bank of India's monetary policy meeting outcome, scheduled for Thursday.