Wiping off its initial losses, the BSE benchmark Sensex gained over 100 points in morning trade on Tuesday. At 10.21 am, Sensex was up 101.76 points at 20002.72. Similarly, Nifty was up 43.35 points at 5933.10 during the same time.
The 30-share index, which lost 745.68 points in the previous two sessions, fell further by 118.18 points, or 0.59 per cent, to 19,782.78 in early trade as banking stocks slumped after international rating agencies downgraded the debt rating of the nation's top three public sector lenders.
Similarly, the wide-based National Stock Exchange Nifty declined by 34.75 points, or 0.59 per cent, to 5,855.00.
The BSE banking index suffered the most by falling 1.48 per cent to 11,458.48 with stocks of SBI declining by 2.75 per cent, Bank of Baroda by 2.35 per cent, Punjab National Bank by 2.59 per cent, ICICI Bank by 0.64 per cent, HDFC Bank by 1.03 per cent and Yes Bank by 1.73 per cent.
Meanwhile, in Asia, Hong Kong's Hang Seng index down by 1.08 per cent, while Japan's Nikkei fell 0.70 per cent in early trade.
The US Dow Jones Industrial Average ended 0.32 per cent lower in Monday's trade.