A further rise in global crude oil prices to around $80 per barrel, along with heavy outflow of foreign funds, eroded the initial gains made by the key equity indices as they eventually ended in the red on Thursday.
Accordingly, the key domestic indices rose higher during the early trade session on the back of positive domestic political cues but also ceded their gains, in part to the heavy selling pressure seen in banking and FMCG counters.
Index-wise, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed at 10,682.70 points -- down 58.40 points or 0.54 per cent from the previous close of 10,741.10 points.
Besides, volatility was evident as the Sensex touched a high of 35,510.01 points and a low of 35,087.82 points during the intra-day trade session.
The BSE market breadth was, however, slightly tilted towards the bulls with 1,392 advances and 1,232 declines. On the NSE, too, the market breadth was positive, analysts said.
"A rise in Brent crude oil futures put pressure on the markets as did FII (Foreign Institutional Investors) outflows and mixed signals from Asian markets," Deepak Jasani, Head of Retail Research at HDFC Securities, told IANS.
"While domestic markets did kickstart the day on a positive note after BJP leader B.S. Yeddyurappa was sworn in as the Chief Minister of Karnataka, stocks reversed initial gains on mixed global cues," he said.
Jasani, however, said broad market indices like the BSE mid-cap and small-cap indices gained, thereby outperforming the main indices. The S&P BSE mid-cap rose 0.67 per cent and S&P BSE small-cap ended 0.43 per cent higher from its previous close.
On the currency front, the Indian rupee strengthened by nine paise against the US dollar to 67.71, from its previous close at 67.80 per greenback.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 830.94 crore, while the domestic institutional investors bought stocks worth Rs 428.92 crore.
The major gainers on the Sensex were Coal India, up 2.53 per cent at Rs 271.40; Sun Pharma, up 1.75 per cent at Rs 480.10; Tata Motors, up 1.53 per cent at Rs 315.15; Wipro, up 1.15 per cent at Rs 277.45; and Tata Motors (DVR), up 0.98 per cent at Rs 185.30 per share.
The top losers were ITC, down 2.43 per cent at Rs 279.00; Bharti Airtel, down 2.34 per cent at Rs 366.55; HDFC, down 2.08 per cent at Rs 1,875.05; Tata Steel, down 1.93 per cent at Rs 610.05; and Axis Bank, down 1.79 per cent at Rs 539.50 per share.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)