The S&P BSE benchmark Sensex washed out earlier gains and was quoted lower by 76 points in late morning trade on fresh selling, mainly in banking, auto, FMCG and capital goods counters.
The Sensex resumed higher at 20,722.90 and moved up further to 20,759.58 on initial buying from operators on the back of higher global cues and hopes of good corporate results coupled with persistent capital inflows.
However, it declined afterwards to 20,498.10 before quoting at 20,531.49 at 1030 hrs, showing a loss of 76.05 points or 0.37 per cent on fresh selling.
The NSE 50-share Nifty also fell by 27.80 points or 0.45 per cent to 6,084.90 at 1030 hrs.
Major lowers were Hindalco Ind (2.08 per cent), HDFC Bank (1.93 per cent), Hero Motocorp (1.90 per cent), Coal India (1.58 per cent), ICICI Bank (1.41 per cent) and Tata Motors (1.34 per cent).
However, Bharti Airtel rose by 2.16 per cent, followed by Wipro (1.62 per cent), Tata Steel (1.51 per cent), NTPC (1.18 per cent) and M&M (1.04 per cent).
Foreign institutional investors (FIIs) bought shares worth a net Rs 730.29 crore as per provisional data from the stock exchanges.
Asian stocks rose in early trade as Senate leaders said they are optimistic they will forge a deal to reopen the US government and avoid a breach of the debt limit this week.
Key benchmark indices in South Korea, Japan, Hong Kong and Taiwan rose 0.51 per cent to 0.92 per cent while China’s Shanghai Composite fell 0.14 per cent. Stock markets in Singapore, Malaysia and the Philippines were shut for holidays.