For the second time in its history, the Sensex breached 25,000-mark but failed to hold above that level on heavy profit-booking and closed with a marginal rise today ahead of swearing-in of Narendra Modi as Prime Minister.
The 30-share BSE index surged 482 points to hit day's high of 25,175.22 boosted by power, PSU, capital goods, auto and realty stocks. In previous two days, it gained 395 points.
However, the momentum fizzled out in last hour and the Sensex briefly slipped into negative zone to touch a low of 24,433.90. It recovered marginally to end 23.53 points, or 0.10 per cent, higher at 24,716.88, surpassing its record close of 24,693.35 on Friday. Intra-day, it swung 741 points.
In three straight sessions, Sensex has risen 418 points.
On the day of vote counting, Sensex had hit life-time high of 25,375.63 but did not close above the key 25K mark.
Meanwhile, the broad-based NSE Nifty, which had rallied over 136 points during the session to a high of 7,504, succumbed to profit-booking and eased by 8.05 points, or 0.11 per cent to end at 7,359.05.
"Markets sheds early gains with strong profit booking seen across the board in midcaps and small caps, high beta sectors like realty, infrastructure, PSU banking and power...FIIs have turned sellers in stock futures since past few days," said Jayant Manglik, President-retail distribution, Religare Securities.
Modi, who will be sworn is as Prime Minister this evening, is likely to head a 45-member Union Council of Ministers including 24 with Cabinet rank.
M&M, L&T, Tata Motors, HDFC Bank, TCS, ITC, Sesa Sterlite, Infosys and Wipro attracted good buying while RIL, SBI, BHEL, NTPC, Tata Power, Gail India, Hindalco, Tata Steel, Maruti Suzuki and Hero MotoCorp suffered losses.
Going ahead, RBI's monetary policy in first week of June and Union Budget from Modi government shall be major triggers for the market, according to Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Meanwhile, Foreign Institutional Investors (FIIs) bought shares worth a net Rs 416.80 crs on last Friday as per provisional data from the stock exchanges.
Asian stocks showed a mixed trend after reports said China's premier said policy will be fine-tuned as needed to support the economy. Indices in China, Japan, Singapore and Taiwan moved up in 0.15-0.97 per cent range while Hong Kong and South Korea eased.
European markets, however, were trading firm in their early deals. France's CAC was up 0.66 per cent and Germany's DAX up 1.37 per cent while the UK market was closed today on account of a holiday.
Back home, 18 scrips out of 30-share Sensex pack ended lower while 12 others finished higher.
Major gainers were M&M (6.23 per cent), Sesa Sterlite (4.24 per cent), Wipro (3.18 per cent), Tata Motors (2.76 per cent), Larsen (2.16 per cent), Sun Pharma (1.23 per cent), TCS (1.23 per cent) and HDFC Bank (1.11 per cent).
However, BHEL fell by 4.79 per cent, followed by Tata Power 4.11 per cent, Gail India 3.64 per cent, Hindalco 3.19 per cent, NTPC 2.49 per cent, Reliance Industries 2.38 per cent, SBI 2.01 per cent, Tata Steel 1.92 per cent, Hero Motocorp 1.90 per cent, Maruti Suzuki 1.87 per cent, Bharti Airtel 1.23 per cent and Bajaj Auto 1.19 per cent.
"Market had been continuing the celebration since the NDA had registered clear majority with beaten down stocks and cyclical rallying, today was the first day when some amount of profit booking in those sector seen," said Rikesh Parikh, VP Institution Corporate Broking, Motilal Oswal Securities.
Among the S&P BSE sectoral indices, Auto rose by 1.47 per cent, followed by IT 1.46 per cent, Teck 0.81 per cent and Capital Goods 0.56 per cent.
In losers, Realty dropped by 5.22 per cent, Power 2.94 per cent, Consumer Durables 2.00 per cent, Oil& Gas 1.55 per cent and Bankex 0.74 per cent.
Market breadth turned negative as 1,660 stocks ended lower while 1,362 stocks finished higher. The total turnover rose to Rs 6,121.45 crore from Rs 5,449.88 crore on last Friday.