The other prominent gainers were UPL, ICICI Bank, NTPC, Britannia and HDFC. Among those in the red zone were Sun Pharma, Dr Reddy's, Tata Consultancy Services, Infosys, GAIL and Power Grid Corporation.
Banking majors too retreated with IndusInd Bank edging lower by 3.2 per cent, HDFC Bank by 2.5 per cent and State Bank of India by 2.4 per cent. HDFC, Tata Motors and Bharti Airtel dropped between 2.2 and 2.5 per cent.
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.
Among stocks, Tata Steel gained by 1.2 per cent to Rs 468.80 per share while JSW Steel moved up by 1.1 per cent. The other prominent gainers were Mahindra & Mahindra, Bajaj Finserv and Yes Bank.
Bharti Infratel lost by 5.5 per cent to Rs 250.80 per share. The other prominent losers were Bharti Airtel, Yes Bank, IndusInd Bank, Grasim and ONGC.
Among stocks, Eicher Motors was a prominent gainer by moving up 3.8 per cent to Rs 19,948.10. Britannia, Yes Bank, Asian Paints and HDFC were in the green with marginal gains.
Meanwhile, Asian indices traded marginally higher as market participants watched for developments on the US-China trade front ahead of high-level negotiations.
Further, trade concerns emerged with Trump saying that he will not accept a bad deal in trade talks with China as the world's two largest economies meet in early October to end the long-drawn trade war.
Among stocks, JSW Steel gained 3.5 per cent to Rs 263.90 per share while Tata Steel was up 2.4 per cent to Rs 465.90 apiece. Mining major Vedanta was up 3.1 per cent as Hindalco gained by 2 per cent.
BSE S&P Sensex was up 222 points at 39,616 while the Nifty 50 jumped 61 points to 11,849. All sectoral indices except PSU bank at the National Stock Exchange were in the positive zone.