The BSE benchmark index, which had gained over 547 points in the last four trading sessions, moved between 17,486.57 and 17,363.04 range as trading remained listless.
Out of the 30-share index, 16 stocks including HDFC Bank, Bharti Airtel and Sterlite Industries while 13 scrips including ITC, Jindal Steel, HUL and Tata Motors ended lower. Reliance Industries was unchanged.
Brokers said market mood was partly dampened as global slowdown and deceleration in manufacturing pulled down India's May exports by 4.16 per cent to USD 25.68 billion.
"Volatility gripped the market in the last half an hour of trading session as it pared all gains and slipped into red," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
India's crucial monsoon rains have been 31 per cent deficient so far and brokers said that has soured trading action a bit. A good monsoon increases rural income and boosts spending in FMCG and auto sectors, analysts said.
Market participants seem to have ignored data that showed the country's manufacturing sector inched up in June.
"However, demand remains weak...While inflationary pressures remain strong...Weak monsoon is also likely to add to food inflation pressures," said Sonal Varma, India Economist, Nomura.
FMCG and Auto sectoral indices logged losses while Realty, Consumer Durables and PSU indices gained 1-2.3 per cent.
Similarly, the 50-share National Stock Exchange index Nifty closed marginally 0.30 points down to 5,278.60.
Meanwhile, Asian stocks ended mostly higher after manufacturing indicators in Japan and China beat forecasts and European leaders agreed on measures to ease the debt crisis. (MORE)
