After opening on a positive note, the BSE Sensex pared all gains to end 59.14 points or 0.15 per cent lower at 38,310.49.
The NSE Nifty slipped 7.95 points or 0.07 per cent to finish at 11,300.45.
Bharti Airtel was the top laggard in the Sensex pack, shedding over 2 per cent, followed by Sun Pharma, ITC, SBI, Axis Bank, HDFC twins and Nestle India.
On the other hand, L&T rallied over 4 per cent. Titan, HCL Tech, NTPC and UltraTech Cement were also among the gainers.
Indian markets opened on a positive note amid a mixed trend in Asian peers, but profit-booking emerged in the afternoon session, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
According to traders, lack of directional cues from global markets amid spiking COVID-19 cases kept investors on edge.
Bourses in Shanghai, Tokyo and Seoul ended with gains, while Hong Kong closed in the red.
Stock exchanges in Europe were also trading on a negative note in early deals.
Global oil benchmark Brent crude was trading 0.20 per cent lower at USD 45.34 per barrel.
On the currency front, the rupee settled on a flat note, edging just 1 paisa lower to 74.84 against the US dollar.
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