The BSE benchmark index, which had gained 86 points in last two trading sessions, resumed slightly higher and hovered in a narrow range of 17,033.85 and 16,918.87. It finally closed at 16,990.76, up 23 points or 0.14 per cent.
In the 30-share Sensex, 15 counters including Tata Steel, Hero MotoCorp, NTPC, ITC, Coal India, Tata Power and TCS gained in the 1-1.8 per cent range.
After Prime Minister Singh yesterday called for "reviving the animal spirit" in the country's economy, Cabinet Secretary Ajit Seth reviewed the current situation with Finance Secretary R S Gujral, Economic Affairs Secretary R Gopalan, Commerce Secretary S R Rao, Industry Secretary Saurabh Chandra and Power Secretary P Uma Shankar, amongst others.
For the second day in a row, Sensex scaled the 17,000-mark but could not close above the level despite a firm sentiment as investors were seen selling to cover up their pending positions on expiry of June's derivative contracts.
Likewise, the NSE index Nifty moved between 5,159.05 and 5,125.30 before ending 7.25 points higher at 5,149.15.
"Sentiments improved domestically on reports of PM taking over the Finance portfolio and meeting senior officials to plan out economic revival steps. But, volatility associated with F&O expiry day was very much into play," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
Dealers also said a weak global trend capped local shares' gains with European indices trading lower while Asian indices closed mixed as investors adopted a cautious stance ahead of a two-day EU leaders summit.
Meanwhile, the rupee was trading below the 57-level today against the dollar after closing at 57.15. (MORE)