The BSE Sensex retreated from a record high to end flat at 36,541.63 on Friday in volatile trade as investors booked profit in recent gainers despite firm global cues.
Disappointing macroeconomic data and unabated capital outflows by foreign funds too added to the weak trend, brokers said.
The BSE Sensex, after a better start at 36,635.14, advanced to hit a lifetime high of 36,740.07 amid positive cues from other Asian bourses.
However, the emergence of selling at every rise wiped off initial gains completely and the index finally settled 6.78 points, or 0.02 per cent lower at 36,541.63.
The index had gained 282.48 points on Thursday and closed at a record high of 36,283.25 after crude oil prices posted their biggest one-day drop in two years and robust start of the earnings season.
The broader NSE Nifty moved between 11,071.35 and 10,999.75 before ending 4.30 points, or 0.04 per cent down at 11,018.90.
Caution crept as profit-booking was witnessed in most sectors as investors reacted to key macro data release, which came post market hours on Thursday.
The Consumer Price Index (CPI) inflation rose to a five-month high of five per cent in June, while the Index of Industrial Production (IIP) slowed to a seven-month low of 3.2 per cent in May.
Infrastructure, realty, PSU, FMCG, Power, Capital Goods, Healthcare, Banks, Metal, Auto and Oil & Gas saw profit-booking.
Notable losers were ONGC, Axis Bank, ITC, SBI, ICICI Bank, NTPC, Hero Motocorp, Sun Pharma and Bharti Airtel ended the negative zone, falling up to 2.80 per cent.
However, Reliance Industries remained in limelight ended higher 1.34 per cent after company on Friday surged past Rs 7 lakh crore mark, making it the second company after TCS to achieve this milestone.
RIL's market capitalisation (m-cap) rose to Rs 7,01,404 crore (over USD 102 billion).
Other gainers were Coal India, Maruti Suzuki, Bajaj Auto, Kotak Bank, Asian paints, Wipro, HDFC Bank, TCS, HDFC Ltd, Yes Bank, Tata Steel and Adani Ports ended the positive zone.
It was the second week of gains in a row for the markets. The Sensex recorded a significant rise of 883.77 points, or 2.48 per cent, while the Nifty gained 246.25 points, or 2.29 per cent, in the week.
Foreign portfolio investors (FPIs) sold shares worth a net of Rs 742.63 crore, while DIIs bought shares worth a net of Rs 366.40 crore on Thursday, provisional exchange data showed.