The Sensex, which surged nearly 274 points during the day, attracted profit-booking and ended at 9,471.04, still higher by 47.02 points. The market had gained 457 points in the previous day's trading.

However, the 50-share National Stock Exchange index Nifty also moved in similar fashion and closed with a moderate loss of 1.20 points at 2,938.70, after touching the day's high of 3,017.40 point.

Key benchmark indices were sharply off the higher levels as political uncertainty ahead of the general elections and lower US index futures prompted traders to lock in gains after a recent solid surge in Wall Street last evening.

European stocks gave up gains to turn negative early on Tuesday, breaking a three-day winning streak after the euro zone and UK macro data showed job losses and higher inflation in Europe.

Brokers said a plunge was expected after the markets had surged dramatically and more falls are awaited ahead of the expiry of the current month's derivatives on Thursday.