Overall, pharma and FMCG shares gained, while banking, metal and power shares lagged. Dealers expect the market to be volatile near term, depending on global liquidity flows.
Benchmark indices closed down in dull trade Wednesday, with activity largely focused on companies announcing their quarterly numbers.
The Sensex shed 13 points to close at 20147, and the Nifty ended 7 points down at 6104.
Sun Pharma was the star performer among frontline stocks, gaining 7 percent to Rs 1066.10 after reporting better-than-expected fourth quarter numbers.
Tata Motors, Coal India, Cipla and Hero Motocorp were the other key gainers among large caps, rising between 1-3 percent.
GAIL, ICICI Bank, Tata Steel, Jindal Steel and Sterlite Industries were the main laggards, down between 1-2.5 percent.
Among midcaps, HDIL shares crashed over 7 percent after the company reported a net loss of Rs 280 crore for the March quarter.
Overall, pharma and FMCG shares gained, while banking, metal and power shares lagged.
Dealers expect the market to be volatile near term, depending on global liquidity flows. There is still uncertainty over the US Federal Reserve's stance on the monetary stimulus it has been providing in the form of bond purchases from banks
Last week, talk about the Fed beginning to cut back on its bond purchase program had triggered a collapse in equity markets globally.
According to a report by brokerage house Nomura, the Asian markets most vulnerable to the unwinding of the quantitative easing (QE) by the Fed are
Hong Kong, Singapore, India and Indonesia.
"In India, we believe a reduction of QE purchases would be very negative in the short-term, but should bode well over the medium-term," the Nomura note said.
"Despite deteriorating fundamentals, net capital inflows totaled USD 88 bn in 2012, largely due to global quantitative easing. With the current account deficit likely to be almost USD 100 bn in 2013, a reversal of capital inflows would likely wreak havoc on INR, as financing the current account deficit becomes difficult," the note said.
Amid the red flags, some brokerages are upbeat on the prospects for India.
Centrum Broking today said that India is on the cusp of a new bull market and the Sensex is likely to touch 25,900 by December 2014.
"On the fundamental side, this rally will be driven on the back of the recent correction in commodity prices (Oil & Gold), fall in interest rates and continuous efforts by the government to revive growth. The correction in commodities will lead to a cool-off in inflation and lead to deeper correction in deposit and lending rates," the Centrum report said.