IndianOil Corporation fell by 4.08 per cent while index heavyweight Reliance Industries dropped by 3.09 per cent to Rs 1,532.20 per share. The other prominent losers were Coal India, NTPC, Tata Consultancy Services, Adani Ports, Axis Bank and Bajaj Finance.
Asian shares traded higher as Wall Street extended its run of record peaks on solid US economic data. But prices jumped as oilfields in southwest Libya began shutting down after forces loyal to Khalifa Haftar closed a pipeline, potentially reducing national output to a fraction of its normal level.
Shares had fallen sharply on Monday as Iran and the United States traded threats after a US airstrike killed a top Iranian commander. The mood calmed a little as the session passed with no new aggression.
The heightened tensions sent investors scurrying for the safety of gold, which hit a near seven-year high, while oil jumped to four-month peak.
Reports said the White House's trade adviser said on Monday that the US-China phase one trade deal will likely be signed in the next week but the confirmation will come from President Donald Trump or the US Trade Representative.
MSCI's broadest index of Asia Pacific shares outside Japan was up by 0.55 per cent while Japan's Nikkei lay flat. Japan has approved a record budget for the coming fiscal year in a bid to shore up growth.
Bharti Infratel gained by 3.5 per cent to Rs 257.10 per share while Tata Motors ticked up by 3 per cent. Private lenders ICICI Bank and Axis Bank showed gains of 1.4 per cent and 0.9 per cent.
Hong Kong's Hang Seng index led the losses and was down by more than 1 per cent after police fired live rounds at protestors on the eastern side of Hong Kong island.
Among the gainers were pharma majors like Cipla, Dr Reddy's and Sun Pharma besides Yes Bank, Mahindra & Mahindra, Tech Mahindra, Coal India and Bharat Petroleum Corporation.
MSCI's broadest index of Asia Pacific shares outside Japan ticked up by 0.1 per cent after hitting a four-month high the previous day.