Stock market turned cautious amid the budget announcements by Finance Minister Arun Jaitley with the key indices paring early gains as IT, pharma and power shares witnessed selling pressure.
The benchmark BSE Sensex opened higher at 27,669.08 and moved in a range of 27,725.16 and 27,590.10 points in morning trade.
At 1145 hrs, the Sensex surrendered the gains to trade lower by 4.45 points, or 0.02 per cent, at 27,651.51 points dragged by losses in IT major TCS and Infosys.
The wider NSE Nifty had gained 21.90 points, or 0.26 per cent, at 8,583.20 in opening trade. However at 1145 hrs, it fell by 6.65 points, or 0.08 per cent, at 8,554.65 points with 25 constituents led by TCS Tech Mahindra Infosys and Idea trading in the negative zone.
Investors were focusing on ongoing Budget announcements on expectation of applying balm on frayed nerves. Meanwhile, Nikkei Markit India Manufacturing Purchasing Managers'Index (PMI) monthly survey rebounded from demonetisation downturn in January amid rising order books, production as well as buying levels and the expansion in the sector by increasing 50.4 in January from 49.6 in December.
Among the major gainers were, SBIN 2.73 per cent, ITC 1.76 per cent, HDFC 1.55 per cent, Adani Ports 1.35 per cent, Maruti 1.31 per cent and L&T 1.28 per cent. Notable losers were TCS 2.62 per cent, Dr Reddy 2.08 per cent, Lupin 2.07 per cent and Infosys 1.92 per cent.
Meanwhile, the foreign portfolio investors (FPIs) sold shares worth a net Rs 532.88 crore yesterday, as per provisional data released by the stock exchanges. Overseas, most Asian markets were trading higher as markets continue to assess the latest policies from Trump, and his take on the US dollar. Markets in China, Taiwan, Malaysia and Vietnam remain closed for a holiday.
US stocks ended mostly lower yesterday, as declines in industrial, technology and financials shares outweighed gains in health-care and utilities sectors.