After exhibiting high volatility in early trades, the Sensex closed with a marginal loss of 22 points at 9,849.
The Nifty closed at 2,974, down 8 points.
Dr.Reddy's was the major gainer - the stock surged 5.3% to close at Rs 1,131. Ranbaxy moved up 1.7% to Rs 399. Cipla, however, closed marginally lower at Rs 442.
Gujarat Ambuja was in limelight following the news that Holcim has acquired 14.8% stake in the company. The stock soared to a high of Rs 98 before tumbling into negative zone to a low of Rs 90. The stock finally closed with a loss of 1.6% at Rs 90.50. ACC spurted 2% to Rs 577, and Grasim added 0.8% to Rs 1,448.
Wipro rallied 3.2% to Rs 522. While Infosys declined 1.2% to Rs 2,868, Satyam and TCS ended on a flat note at Rs 743 and Rs 1,661, respectively.
Reliance gained nearly 2% to Rs 712. Reliance Energy slipped 1% to Rs 631.
HDFC advanced 1.6% to Rs 1,317, and HDFC Bank added 1% to Rs 743. SBI slumped 3.3% to Rs 884. ICICI Bank, too, closed in red at Rs 615.
Late selling at the ONGC counter saw the stock slide 2.5% to Rs 1,236.
HLL dropped 1.4% to Rs 192.
Larsen & Toubro shed 1.8% to Rs 2,101. BHEL was down nearly 1% at Rs 1,701.
Auto stocks witnessed selling pressure today. Hero Honda tumbled 2.7% to Rs 851. Maruti declined nearly 2% to Rs 747. Bajaj Auto and Tata Motors were down nearly 1% each at Rs 2,180 and Rs 688, respectively.