The markets opened firm with tech, bank and pharma scrips making steady gains.
The Sensex opened with a gain of 22 points at 6,604 and the Nifty was up 7 points at 2,064.
The markets pared early gains and slipped into negative territory due to selling pressure.
The Sensex closed with a loss of 8 points to 6,574. The Nifty was down one point at 2,055.
HDFC Bank, Hero Honda, HLL, Infosys, ITC, Maruti, ONGC, Reliance Energy, Satyam and SBI made gains.
Wipro, Zee, Bajaj Auto, Bharti, Cipla, Dr Reddy's, ICICI Bank, Tata Motors, Reliance declined.