The market opened on a positive note on the back of firm Asian cues and gained further strength after HSBC Purchasing Managers Index (PMI) data showed a marked rise in country's services sector.
However, subsequently the market sentiment was affected as rupee started falling and also due to mixed European opening amid heightened eurozone crisis and news of emergency meeting of G7 countries which erased large part of the gains.
Banking, oil & energy, PSUs, Service, IT and infra counters attracted good buying interest, while FMCG and auto witnessed selling pressure.
The 50-share Nifty hovered between a high of 4,898.95 and a low of 4,847.70 before closing at 4,863.30, a modest gain of 15.15 points, or 0.31 per cent, over the last close.
L&T, Grasim, Rel Infra, IDFC, Cairn, NTPC, BHEL, Bank of Baroda, Power Grid and SBIN were the top gainers from the Nifty.
However, Ambuja Cement, Tata Motors, Siemens, Bharati Airtel, ITC, BPCL, DLF, SunPharma, Coal India and Tata Steel registered losses.
Turnover in cash segment declined to Rs 8,587.16 crore from Rs 8,920.14 crore yesterday. In all, 4,986.32 lakh shares changed hands in 47,68,642 trades. Market capitalisation stood at Rs 56,15,466 crore.