The BSE benchmark Sensex lost its early surge trading lower by 8.74 points while the broader Nifty failed to hold on to 8,400-mark amid selling and caution ahead of key CPI numbers due today.
In the morning session, the market rallied some 130 points on buying in healthcare, oil & gas, consumer durables, IT and technology sectors amid expectations of an RBI rate cut and firm Asian cues.
Industrial production (IIP) growth slowed to 2.7 per cent in May from the revised 3.4 per cent in April, which has bolstered the case for an interest rate reduction.
The 30-share barometer, which started off at 27,739.32, moved between 27,791.21 and 27,666.72 before quoting at 27,652.66 at 1155 hours, down 8.74 points, or 0.03 per cent.
The 50-share Nifty, however, traded up 1.40 points, or 0.02 per cent, to 8,361.95 at 1155 hours.
Among the top gainers, GAIL stood out, up 2.76 per cent, followed by Sun Pharma, Cipla, Bharti Airtel and Maruti, TCS and Wipro.
Those who lost big time included Hindalco, Vedanta, L&T, ONGC and BHEL.
Meanwhile, foreign investors sold shares worth Rs 465.27 crore last Friday, provisional exchange data showed.
Overseas, Asian markets are ruling higher as investors are optimistic of a last-minute deal between the embattled Greece and its international creditors.
Key benchmark indices in China, Hong Kong, Japan, Taiwan, Singapore, Indonesia and South Korea are all up by 0.27 per cent to 2.28 per cent.
