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The Sensex was down 456.10 points, or 0.62 per cent, at 72,943.68 on Tuesday, while the Nifty closed at 22,147.90, down 124.60 points, or 0.56 per cent.

The domestic market sustained its consolidation trend for the third consecutive day amid apprehensions regarding geopolitical tensions and a drop in the probability of a rate cut by the US Fed in the short term, Vinod Nair, Head of Research at Geojit Financial Services, said on Tuesday.

The IT sector stocks saw the most significant decline, primarily due to the expectations of earnings being affected by the weak discretionary spending in the US and muted domestic Q4 results, he said.

Heightened concerns arose following stronger-than-anticipated US retail sales, amplifying the assumption that the US Federal Reserve might delay rate cuts, leading to a notable uptick in the dollar index and US bond yields, he said.

The equity benchmarks extended their decline on Tuesday, influenced by weak global cues amid the ongoing geopolitical tensions, said a report by Asit C. Mehta Investment Intermediates.

While the equities suffered, gold continued to shine as geopolitical tensions persisted.

Jateen Trivedi from LKP Securities said gold traded strongly as the global markets reacted negatively to Israel's statement regarding Iran's drone attack retaliation, leading to increased safe-haven buying in gold prices.

Looking ahead, the sentiment remains bullish for gold as long as geopolitical tensions persist and escalate, he said.