"The domestic market ended flat, due to by profit-booking at higher levels. However, the expectation of dovish comments from the US Fed and BoE in the upcoming policy meetings this week is supporting the optimism," Vinod Nair, Head of Research, Geojit Financial Services said.
Despite heavy volatility, the combined market valuation of all BSE-listed companies hit the USD 5.50-trillion milestone for the first time.
From the Sensex pack, Tata Motors, NTPC, Bajaj Finserv, Power Grid Corp, Titan, Asian Paints, IndusInd Bank, Maruti Suzuki India and Tata Steel were among the biggest gainers.
Sun Pharmaceuticals, ITC, Hindustan Unilever, Bharti Airtel, UltraTech Cement and Reliance Industries were among the laggards.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the negative territory. European markets were trading on a mixed note. The US markets closed higher on Monday.
Global oil benchmark Brent crude declined 0.05 per cent to USD 79.73 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,474.54 crore on Monday, according to exchange data.
On Monday, the 30-share BSE Sensex closed higher by 23.12 points or 0.03 per cent at 81,355.84, its all-time closing high.
The NSE Nifty ended marginally up 1.25 points or 0.01 per cent at an all-time closing high of 24,836.10.