Indian equities closed lower on Tuesday, pressured by financial stocks as investors booked profits following recent gains.

Rising tensions between India and Pakistan and weak global cues ahead of the US Fed's policy decision further dampened sentiment.

Analysts said uncertainty around escalating cross-border tensions and muted quarterly earnings kept investors cautious.

The BSE Sensex declined 155.78 points, or 0.2%, to end at 80,641.06, while the NSE Nifty 50 dropped 81.55 points, or 0.3%, to close at 24,379.60.

State Bank of India (NSE:SBIN, BOM:500112), Tata Motors (NSE:TATAMOTORS, BOM:500570), and IndusInd Bank (NSE:INDUSINDBK, BOM:532187) were the top laggards.

Bharti Airtel (NSE:BHARTIARTL, BOM:532454), Tata Steel (NSE:TATASTEEL, BOM:500470) and Hindustan Unilever (NSE:HINDUNILVR, BOM:500696) led the gainers

In corporate updates, Housing and Urban Development Corporation Ltd (NSE:HUDCO, BOM:540530) received board approval to raise up to 21.90 billion Indian rupees via private placement of non-convertible debentures carrying a coupon rate of 6.90%.

Bondada Engineering Ltd (BOM:543971) said its subsidiary Bondada Green Engineering secured a 13.3 million rupees order from Bharti Airtel for the supply of galvanized iron poles in Tamil Nadu, to be fulfilled within one month.