The index hit an eight-month closing high in the previous session. It last breached the 6,000 mark in February.

The 30-share Bombay Stock Exchange index was up 0.28 per cent at 5,946.80 points by 1025 hrs IST. Gainers outnumbered losers nearly two to one in active trade of 25 million shares.

The National Stock Exchange index was up 0.24 per cent at 1,867.20 points.

"There is enough liquidity and foreign fund inflow, and we could test the 6,000 mark in the next couple of sessions," said Vijay Bhambwani, chief executive of BSPL India.

"But there seems to be a lack of buying conviction at the higher levels, or perhaps the bulls are tiring out after the recent rally," he said.

The index gained nearly 4 per cent last week and foreign funds bought more than $247 million worth of shares last week.

On Tuesday, software services firms continued to rise, but investors booked profits in auto makers and energy providers, which had participated in the recent rally.

Infosys Technologies Ltd, the No 2 services exporter, added 0.7 per cent to Rs 2,032. The stock is at its highest levels in more than four years.

Satyam Computer Services Ltd, the No 4 exporter, gained 1.9 per cent to Rs 400.05.

Indian courier firm Blue Dart Ltd, in which DHL offered to buy up to an 88 per cent stake for $162 million on Monday, rose 1.3 per cent to Rs 324.50.

India's biggest mortgage lender, Housing Development Finance Corp rose 0.8 per cent to Rs 684 after it said on Monday it would raise home loan rates by 50 basis points.

Bajaj Auto Ltd, the No 2 motorcycle maker, slipped 0.5 per cent to Rs 981 and Tata Motors Ltd, the biggest bus and truck maker, fell 0.4 per cent to Rs 428.

Oil refiners also fell on fears that there may be a rollback of the higher domestic fuel prices announced last week.

State-run refiner Hindustan Petroleum Corp Ltd fell more than 2 per cent to Rs 334.95 and Bharat Petroleum Corp Ltd falling 0.5 per cent to Rs 388.50.