The 30-share index was trading 130.35 points, or 0.33 per cent, lower at 39,626.46.
Reliance Capital said it has signed binding definitive agreements with Nippon Life Insurance of Japan.
According to traders, investor sentiment was boosted by initial trends that suggested a win for the ruling NDA.
'Hinduja Group is evaluating the Jet Airways opportunity,' the group said in a statement on Tuesday.
BSE Sensex rise led by gains in oil and gas, banking and IT stocks, ahead of the general election results.
The scrip, after a weak opening at Rs 186.60, further dropped 6.10 per cent to Rs 178.40 on the BSE.
Stocks that touched 52-week highs include Bajaj Finance, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, SRF and Titan.
Both the key indices rallied in the last hour of trade after trading on a tepid note through most part of the day.
Tata Chemicals scrip jumped 8.36 per cent to Rs 604 on the BSE, and 8.83 per cent to Rs 606 on the NSE.
The BSE gauge Sensex fell 61.88 points to trade at 37,028 in early deals.