Brokers said besides a weak trend in global markets after Federal Reserve meeting minutes suggested the U.S. central bank was considering tightening monetary policy, caution ahead of Reserve Bank's monetary policy to be announced later in the day influenced the sentiment.
Indian equity markets on Thursday recovered marginally after the Reserve Bank of India (RBI) maintained status quo on interest rates in its first bi-monthly monetary policy review of the 2017-18 fiscal. The policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 percent.
The 30-share BSE Sensex stayed in the red zone throughout the session, shuttling between 29,954.25 and 29,817.59, before finishing at 29,927.34, down 46.90 points, or 0.16%.
The NSE 50-share Nifty opened lower at 9,245.80 and moved in a range of 9,267.95 and 9,218.85 before concluding at 9,261.95, showing a marginal loss of 3.20 points or 0.03 per cent.
In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) purchased scrip worth Rs 142.68 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 205.64 crore.
Broader markets were mixed, with small-cap index falling 0.23 per cent while mid-cap rising 0.15 per cent.
In contrast, the BSE market breadth was bullish - with 1,472 advances and 1,419 declines. Global cues were lower as well. Among BSE sectoral indices, FMCG slumped 0.79%, followed by consumer durables (0.64%), healthcare (0.63%), capital goods (0.21%), bank (0.21%) and auto (0.08%).
On Thursday, Asian indices were showing a negative trend.
However, it later slipped to 29817.69 before closing at 29974.24, up 64.02 points or 0.21 per cent. China's Shanghai Index, however, rose 0.33%.