The 30-share index had recovered by over 157 points at the outset and touched a high of 22,575.62 points. Later, it succumbed to profit-booking to settle 13.91 points lower, or 0.06 per cent, at 22,403.89 points.
The 50-share Nifty of the National Stock Exchange fell 1.60 points, or 0.02 per cent, to end at 6,694.80 after touching the day's high of 6,737.65 points.
"Profit-booking and cautious approach ahead of Lok Sabha election results are evident in the market," Nidhi Saraswat, Senior Research Analyst,Bonanza Portfolio Ltd.
"Almost flat growth in manufacturing PMI in April, as against previous month, also weakened market sentiment," Saraswat added.
Foreign funds were seen trimming their portfolios by booking profits at every rise, brokers said, adding that a subdued opening in the European markets also influenced the sentiment.
Maruti Suzuki and Mahindra & Mahindra fell by up to 1.69 per cent at close on poor April sales numbers.
RIL declined by close to 1 per cent while Larsen & Toubro dropped the most by 2.50 per cent among Sensex scrips. Tata Steel too faced selling pressure and lost 2.46 per cent.
Bucking the trend, IT stocks led by Infosys, Tata Consultancy Services and Wipro met with value buying and closed with sizeable gains, avoiding any major fall in the Sensex.
In 30-share Sensex, 16 stocks ended in negative zone while 14 settled higher.
The capital goods sector index suffered the most by losing 1.78 per cent to 11,902.84 followed by metal index by 1.41 per cent to 9,840.32. Banking index closed 0.11 per cent lower at 14,690.50.
Auto Index lost 0.51 per cent to 13,303.39 points, while power index shed 0.32 per cent to 1,681.22.
DipenShah, Head- Private Client Group Research, Kotak Securities: Markets fell marginally for the week. This was the fourth successive week that the markets have been almost flat, with marginal changes. This likely shows the reluctance of the participants to take big bets post the sharp rise seen in the markets. In the short term, we expect the markets to consolidate though with higher volatility. However, with the big political event out of the way, growth, valuations, monsoons, etc may take center-stage and may lead to some profit-booking in the markets. Over the medium-to-long term, the formation of a stable government will likely put the infrastructure and industrial sector back on track as well as ease concerns on fiscal deficit thus, providing an upward bias to the current valuations, we believe.
BSE Sensex closes lower on profit-taking
(Reuters) BSE Sensex provisionally closed lower for a fifth consecutive session as investors continued to book profits in recent outperformers such as Larsen and Toubro .
The benchmark BSE index provisionally closed 0.06 percent lower to 22,403.89.
The broader NSE index ended 0.02 percent down at 6,694.80.
Shares in Larsen and Toubro ended 2.41 percent lower.