The 30-share BSE Sensex climbed 204.23 points to 61,965.56 in early trade. The NSE Nifty gained 57.2 points to 18,323.15.

However, later both the key benchmark indices pared all the gains, with the BSE benchmark trading 71.95 points lower at 61,689.38, while the Nifty fell 22.85 points to quote at 18,243.10.

Among the Sensex firms, IndusInd Bank, Power Grid, Tata Motors, Reliance Industries, UltraTech Cement, Nestle and ITC were the major gainers.

State Bank of India, Tata Steel, Axis Bank and HDFC were the major laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

The US markets had ended in the negative territory on Tuesday.

“US inflation data for April will be keenly focused as this would provide some indication about the Fed’s next course of action on the rate front,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Meanwhile, global oil benchmark Brent crude declined 0.70 per cent to USD 76.90 per barrel.

Foreign Institutional Investors (FIIs) were net buyers on Tuesday as they bought equities worth ₹1,942.19 crore, according to exchange data.

The BSE benchmark skidded 2.92 points to settle at 61,761.33 on Tuesday. The Nifty ended marginally up by 1.55 points or 0.01 per cent at 18,265.95.