Intra-day, it hovered between 10,088.10 and 10,046.35.
The Tata Steel stock was trading 3.4 percent higher at Rs 620 on the Bombay Stock Exchange (BSE) at around 10.40 am while Hindalco and Vedanta were up 3.82 percent (at Rs 236) and 3.56 percent (at Rs 298), respectively, on the National Stock Exchange (NSE).
The broader NSE Nifty ended 0.78 per cent lower at 9,978.55, its lowest close in two weeks.
The BSE market breadth was skewed in favour of bears - with 2,020 declines and 566 advances.
Volatility continued to plague Dalal Street as benchmark indices languished into the negative territory despite a buoyant outset in Tuesday's session.
Analysts are of the opinion that bank and financial stocks have come under pressure after the Sebi directive as much of the laundering takes place in the banking and real estate sector. Meanwhile, BSE Sensex lost 171 points or 0.53% at the 32,101 level and Nifty lost 49 points or 0.49% at the 10,007 level.
Investors turned jittery after the market regulator last night directed bourses to initiate action against the suspected shell companies scrips of which will not be available for trading this month.
Indian currency, Rupee opened at 63.73 as against US Dollar.
"Indian equity shares witnessed a sudden sell-off on Tuesday after a positive opening. Overseas, Asian shares ended mixed as disappointing Chinese trade data clouded an otherwise bright outlook".