Stock markets had opened on a strong note with the 30-scrip BSE Sensex touching a new high of 25,711.11 points in early trade on heavy buying by funds and retail investors.
However, profit booking in realty, oil and gas, capital goods, power and metal stocks pulled the index down to the day's low of 25,347.33 points. It saw a mild recovery before ending at a new closing high of 25,583.69, up 3.48 points or 0.01 per cent.
This was its fourth successive positive closing. The gauge had gained nearly 775 points in the previous three days.
Yesterday, the 30-share benchmark index had hit previous lifetime high of 25,644.77 and ended at record closing high of 25,580.21 on optimism over government's agenda for reforms.
The broad-based NSE Nifty, after soaring to a new intra-day high of 7,683.20, succumbed to selling pressure to close just 1.80 points, or 0.02 per cent, up at 7,656.40 -- also a new record closing. It surpassed previous intra-day record of 7,673.70 reached yesterday.
Brokers said investors were booking profits after the market climbed to all-time high and adopted a cautious stance ahead of retail inflation for May and April factory output.
Besides, some worries over below-normal monsoon forecast, too triggered some selling by participants.
In Sensex, 16 losers were led by Axis Bank, SBI, Hero Motorcorp, ICICI Bank, Larsen and Toubro, BHEL, Bajaj Auto, ONGC, Reliance Industries, Sesa Sterlite and HDFC Bank.
The 14 gainers which helped Sensex to close in the positive territory were Infosys, TCS, Wipro, Cipla, Sun Pharma, Hindalco, HUL, Coal India, Tata Motors and HDFC.
Sectorwise, the consumer durables index gained the most by rising 3.55 per cent, followed by IT by 2.32 per cent and healthcare index by 1.97 per cent, among others.
However, the realty index suffered the most by losing 2.96 per cent, followed by PSU index down 1.28 per cent to and oil and gas index slipped 0.96 per cent.
Indian shares end flat after hitting record highs
(Reuters) Indian shares ended flat on Tuesday after hitting record highs for the third consecutive session as gains in defensive stocks such as healthcare and technology were offset by profit-taking in the broader market.
Investors took profits in recent outperformers such as Oil and Natural Gas Corp., while recent underperformers such a Infosys Ltd saw some buying interest.
However, the sentiment remained upbeat as investors are optimistic ahead of the newly formed Modi government's first Union budget, expecting promises on the revival of the domestic economy.
Overseas investors, who have been supporting the rally in the Indian market, bought shares worth $90.83 million on Monday, in a sixth straight session of buys. FIIs have bought Indian shares worth $9.4 billion so far this year.
"The outlook is positive and there is nothing that warrants a sell-off. However, we advise our clients to be stock specific. We do expect some more upside from the current levels," said Daljeet S Kohli, head of research at brokerage IndiaNivesh.
"Investors will be waiting for the Union budget, which would be the next big trigger and the first documentation of what the new government will be doing," he added.
The benchmark BSE index ended 0.01 percent higher at 25,583.69, while the broader NSE index closed up 0.02 percent at 7,656.40.
Earlier in the session, the BSE index rose as much as 0.51 percent to hit a record high of 25,711.11, surpassing the highest level of 25,644.77 hit on Monday.
The NSE index rose 0.37 percent to hit a fresh all-time high of 7,683.20, crossing the level of 7,673.70 touched on Monday.
ONGC fell 2.78 percent, adding to its 2.7 percent fall on Monday after it rose 12.1 percent to an all-time high on Friday.
Larsen and Toubro ended 0.75 percent lower after gaining 3.6 percent on Monday on profit-taking. The stock is still up 62.5 percent so far this year.
Among other blue-chips, shares in Reliance Industries Ltd fell 0.4 percent, while Bharat Heavy Electricals Ltd closed down 2.72 percent.
Real estate companies fell sharply with the realty index of the BSE falling 2.96 percent on profit-taking. Shares in DLF Ltd ended 3.4 percent lower, while Unitech Ltd closed down 3.2 percent. Both the stocks are still up 11 percent and 31.9 percent respectively so far this month.
However, stocks in defensive sectors such as technology and healthcare saw some buying interest as investors look to reduce risk and volatility in their portfolios as local indexes edge lower on profit-taking.
Among technology stocks, Infosys Ltd gained 2.97 percent, Tech Mahindra Ltd gained 2.5 percent and Wipro Ltd ended 2.6 percent higher.
Cipla Ltd closed 2.8 percent higher while Dr Reddy's Laboratories Ltd ended 1.8 percent higher.
FACTORS TO WATCH
* Yen inches higher, options seen keeping euro steady
* Oil around $110 on tight supply, buoyant demand
* Money market rates hit new low as ECB moves gain traction