Value buying, healthy macro economic data and positive global markets restored investors' confidence in the Indian equity markets and led a barometer index to gain 31 points or 0.12 percent on Tuesday.
Choppy market conditions prevailed throughout the day's trade. Initially, both the bellwether indices of the Indian equity markets opened in the positive territory in sync with their Asian peers.
Notwithstanding the positive sentiments, the initial gains were ceded as caution grew on the heightened chances of a US rate hike. Furthermore, investors were seen anxious about the Bihar election results and ongoing results season.
Short covering were observed, as investors exited their investment positions, this drove prices higher and lead to profit bookings.
However, value buying and positive global cues helped markets close in the positive territory after six consecutive sessions of losses at the National Stock Exchange (NSE).
The 50-scrip Nifty of the NSE lost 244.65 points during its six-sessions of losing streak.
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The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) lost 804 points during its five-session of losing streak.
On Tuesday, the NSE Nifty closed flat. It inched up by 9.90 points or 0.12 percent at 8,060.70 points.
The S&P BSE Sensex which opened at 26,660.71 points, closed at 26,590.59 points -- up 31.44 points or 0.12 percent from the previous day's close at 26,559.15 points.
The Sensex touched a high of 26,732.24 points and a low of 26,514.48 points during the intra-day trade.
The S&P BSE Sensex had closed the previous day's trade down 98 points or 0.37 percent.
Market observers said the markets were volatile due to the Bihar election results and ahead of the crucial data release on the US economy.
"The markets had initially made healthy gains on the back of robust ECI data that showed a substantial increase in output," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
"However, profit bookings, anxiety over the Bihar poll results, heightened chances of a US rate hike subdued sentiments and capped the initial gains."
Gaurav Jain, director with Hem Securities said: "Indices could not sustain the gains as investors awaits the results of Bihar elections and continued selling by foreign portfolio investors weighed on the sentiment."
The foreign institutional investors (FIIs) were net sellers in the day's trade, whereas the domestic institutional investors (DIIs) were net buyers.
According to data with stock exchanges, the FIIs sold stocks worth Rs.449.84 crore, while the DIIs picked up stocks worth Rs.350.31 crore.
Nitasha Shankar, vice president, research, with YES Securities, told IANS: "Indian markets snapped its six days of losing streak to end trade with marginal gains. Broader markets also gained in trade in line with the headline index."
"Bank index remained under pressure. Tech, energy and cement stocks outperformed, while metal and banking stocks saw selling pressure."
Sector-wise, S&P BSE consumer durables index plunged by 84.43 points, capital goods index receded by 80.11 points and banking index plummeted by 21.31 points.
On the other hand, the S&P BSE information technology (IT) index surged by 103.16 points, oil and gas index gained by 74.29 points and healthcare index rose by 41.33 points.
Major Sensex gainers during Tuesday's trade were NTPC, up 2.15 percent at Rs.135.65; Mahindra and Mahindra (M&M), up 1.96 percent at Rs.1,232.80; ONGC, up 1.64 percent at Rs.251.25; Hindalco Industries, up 1.61 percent at Rs.82.25 and Vedanta, up 1.44 percent at Rs.98.30.
The major Sensex losers were Lupin, down 1.38 percent at Rs.1,873.50; Tata Motors, down 1.33 percent at Rs.382.05; Larsen and Toubro (L&T), down 1.17 percent at Rs.1,372.20; Tata Steel, down 1.09 percent at Rs.236.05 and Bharti Airtel, down 1.01 percent at Rs.346.85.