Strong buying in cyclical stocks, including financial, energy, auto, metal, FMCG and infra helped the 50-share index to recoup most of the early losses towards the tail-end.
However, software stocks witnessed huge unwinding after Citigroup downgraded IT bellwether Infosys' stock ahead of its Q2 results on Friday. Pharma counter also encountered heavy selling as investors pared positions after recent rally.
The Nifty fluctuated between a high of 7,869.90 and a low of 7,815.75 before ending at 7,842.70, showing a modest fall of 9.70 points, or 0.12 per cent.
Infosys topped the selling list with the stock tanking by 4.73 per cent on heavy volume. Other IT players such as Wipro, TCS, Tech Mahindra, HCL Tech, too, fell sharply.
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Other big index losers included Sun Pharma, Lupin, Dr Reddy's, Cipla, HDFC, Bharti Airtel, Kotak Bank and Sesa Sterlite.
Meanwhile, PSU oil marketing stocks like BPCL, HPCL and IOC attracted huge buying interest and surged 3 to 7 per cent following a sharp drop in brent crude prices in the international market.
Turnover in the cash segment jumped to Rs 14,551.94 crore from Rs 15,375.31 crore yesterday. A total of 7,339.46 lakh shares changed hands in 65,15,906 trades, while market capitalisation stood at Rs 90,41,047 crore.