Sensex gives up gains on late profit-booking

MUMBAI (Reuters) - The BSE Sensex and Nifty closed slightly lower on Tuesday as investors booked profits on blue chips such as Tata Motors Ltd and Oil and Natural Gas Corp after two sessions of gains.

Overall, traders said sentiment was improving after a volatile April, given rising expectations the Reserve Bank of India could cut interest rates for a third time this year at its next policy review on June 2.

The broader Nifty fell 0.1 percent after rising 1.8 percent over the previous two sessions.

The benchmark Sensex ended 0.15 percent lower.

Tata Motors Ltd fell 2.1 percent late in the session after a new variant of the company's small car Nano failed to enthuse investors. The stock had gained 0.8 percent in the last two sessions.

Other blue chips including Housing Development Finance Corp Ltd and Oil and Natural Gas Corporation Ltd also ended lower, closing down 1.9 percent and 1.3 percent, respectively.

(Reporting by Himank Sharma)