The 50-share Nifty swung widely between a high of 5,399.95 and a low of 5,341.70 before ending at 5,366.30, a marginal gain of 3.35 points over the last close.
Domestic bourses saw an uptrend in line with world cues as financial markets across globe rallied and touched multi-month highs on positive vibes created by Germany Chancellor Angela Merkel's support for European Central Bank intervention to calm the euro-zone's debt troubles.
The trading mood was also lifted by measures announced by market regulator Sebi to boost capital market and mutual fund industry as well as Finance Minister's assurance to announce fresh market reform measures next month.
However, the key index, which climbed to 5,400 level in early trade, reacted to the CAG reports and gradually slipped into the red. It mostly traded in a tight range after the slide amid volatility and ended flat.
The much-awaited report of the Government auditor pegged loss in coal allocation at Rs 1.86 lakh crore and also named some top corporates as beneficiaries. CAG, in two other reports, dealt with Delhi airport development and diversion of coal to a power project in Madhya Pradesh.
On sectoral front, oil & gas, metal and infra suffered the most, while FMCG, tech, auto and pharma attracted buying.
Tata Motors, HUL, ITC, Infosys, Wipro, TCS, Ranbaxy, Bharti Airtel, Dr Reddy's and Bajaj Auto were the top gainers from the Nifty bunch. Jindal Steel, Tata Power, Reliance Infra, Hindalco, DLF, Power Grid, Sail, L&T, Gail and Ambuja Cement was among the major losers.
The turnover in cash segment advanced to Rs 10,262.50 crore from Rs 10,165.94 crore yesterday. Overall, 6,511.06 lakh shares changed hands in 53,12,686 trades. Market capitalisation stood at Rs 60,67,178 crore.