Late selling in blue-chips like Reliance Industries, ITC, Infosys, TCS and Bharti Airtel dragged down the index from the record level to close flat.
The benchmark BSE Sensex retreated from record high levels to close flat at 32,383.30 due to selling in IT, pharma, oil and gas and technology stocks.
The Sensex closed marginally higher by 0.84 point at 32,383.30.
During the day, the barometer rallied over 260 points to touch fresh high of 32,642.91 following buying spree in financials, banks, realty, auto, IT, FMCG and oil and gas stocks.
However, late selling in blue-chips like Reliance Industries, ITC, Infosys, TCS and Bharti Airtel dragged down the index from the record level to close flat.
The 50-share Nifty of NSE scaled all-time high of 10,114.85 in day trade, but closed flat at 10,020.55 as 33 index constituents ended with losses.
Markets pared gains due to late sell-off on expiry of July series derivatives contracts and profit-booking at record levels amid disappointing earnings by some blue-chip companies, brokers said.
Dr Reddy's that reported over 57 per cent drop in net profit fell over 3 per cent and was the biggest loser among index scrips.
RIL, ITC, Infosys, TCS and Bharti Airtel fell up to 2.76 per cent.
However, strong gains in banking stocks like HDFC Bank, Kotak Bank, SBI and HDFC helped the index limit losses.
Photograph: Danish Siddiqui/Reuters