The equity benchmarks settled lower for a second straight session on Tuesday, extending the previous day’s sharp decline, as caution prevailed ahead of the US Federal Reserve’s policy announcement. Sentiment was further hit after the US signalled possible tariff action against India’s rice exports.

The Sensex settled 436.41 points or 0.51 percent lower at 84,666.28, while the broader Nifty slipped to 25,839.65, down 120.90 points or 0.47 percent.

Asian Paints, Infosys and Jio Financial Services were among the major laggards in the Nifty50 pack, declining up to 4 percent, while Titan Company and ETERNAL were among the top gainers, rising up to 1 percent. Market breadth remained negative as about 1400 shares advanced, 2104 shares declined, and 151 shares unchanged.

Broader indices outperformed the main indices with BSE midcap index adding 0.6 percent and smallcap index rising 1.3 percent.

Biggest Nifty losers were Asian Paints, Tech Mahindra, Tata Steel, Dr Reddy's Laboratories, Interglobe Aviation, while gainers included Titan Company, Shriram Finance, Adani Enterprises, Eternal, Bharat Electronics.

Among sectors, IT, auto, metal down 0.3-1 percent, while realty, telecom, capital goods, PSU Bank up 0.5-1 percent.

In stock-specific action, Fujiyama Power Systems shares added 1% as Q2 profit jumps 97%, Physicswallah shares fell 2% despite Q2 consolidated profit rises 69%, Siemens shares shed 2% on sale of Low Voltage Motors and Geared Motors businesses, VTM shares fell nearly 5% on signing MoU with Government of Tamil Nadu, SpiceJet share price rose 6% on adding 2 Boeing 737 Aircraft, Ajmera Realty shares added 4% on recording 81% sell at residential project, Solarworld Energy Solutions share price added 2% on project win of Rs 806 crore.

More than 500 stocks hit 52-week low, including Balrampur Chini Mills, Tata Chemicals, Mahanagar Gas, United Breweries, Sapphire Foods, Piramal Pharma, Blue Dart, Aarti Industries, ACC, Chambal Fertilisers, Tejas Networks, Inox Wind, Page Industries, Power Finance, NCC, Trent, REC, BASF, among others.