Mumbai: Benchmark Sensex gave up early gains to close flat on Tuesday after a rally in realty and auto counters was offset by foreign funds retreating to the sidelines ahead of US Fed's policy meet.
The 30-share index rose over 150 points in morning trade to recapture the 30,000-mark, hitting a high of 30,069.24, but later lost momentum to fall to 29,804.72.
It finally ended at 29,921.18, up 2.78 points, or 0.01 percent.
The broader NSE Nifty shuttled between 9,352.55 and 9,269.90, before ending 9.75 points or 0.10 percent higher at 9,313.80.
Brokers said markets are expected to be range-bound as investors are awaiting the outcome of US Fed's two-day meeting, as well as results of some more bluechips.
"Market regained from days low and ended flat supported by auto stocks with gains in April month sales.
"However, earnings growth is needed to sustain the premium valuation. On the global front, the announcement of Fed policy tomorrow is likely to add some volatility to the market," said Vinod Nair, Head of Research, Geojit Financial Services.
Foreign funds sold net shares worth Rs 1,150.45 crore last Friday, as per provisional figures issued by stock exchanges.
Meanwhile, India's manufacturing sector grew for the fourth month in a row in April on surge in new business orders but the pace of expansion was same as the previous month and job growth moderated, a monthly survey showed on Tuesday.
Auto stocks, led by Maruti Suzuki, hogged the limelight throughout the session, largely on the back of strong sales data for April.
Shares of the country's largest carmaker Maruti Suzuki India rose by nearly 3 percent, adding Rs 5,442 crore to its market valuation, after the company posted a 19.5 percent jump in total sales for April 2017.
Hero MotoCorp gained 1.22 percent, Bajaj Auto rose 1.28 percent while M&M inched up 0.48 percent.
Stocks of realty and housing finance companies too recorded handsome gains after the much-awaited Real Estate Act came into force from May 1, even though only 13 states and UTs have so far notified rules.
Other index gainers included ONGC (3.14 percent), HDFC Ltd (2.99 percent), GAIL (1.46 percent), Adani Ports (1.16 percent), TCS (0.87 percent) and Infosys (0.17 percent).
However, Lupin fell 2.49 percent, Bharti Airtel 2 percent, Reliance 1.71 percent, Sun Pharma 1.59 percent, NTPC 1.40 percent, Tata Motors 1.34 percent and L&T 1.06 percent.
Overseas, Asian markets ended mixed, with China's Shanghai Composite falling 0.35 percent, while Hong Kong's Hang Seng rose 0.33 percent. Japan's Nikkei ended 0.70 percent higher.
European shares were higher in late morning deals as investors awaited the upcoming French presidential vote.
London's FTSE was up 0.43 percent, France's Paris CAC 30 rose 0.24 percent and Germany's Frankfurt gained 0.07 percent.
Back home, the BSE Mid-Cap index was higher by 0.38 percent, while the small-cap index rose 0.31 percent.
Among BSE sectoral and industry indices, realty gained the maximum at 1.99 percent, followed by consumer durables 1.21 percent, oil&gas 1.05 percent, PSU 0.64 percent, IT 0.53 percent and auto 0,.53 percent.
The market breadth remained negative as 1,518 stocks closed in red, while 1,355 ended higher and 177 ruled steady.
The total turnover on BSE amounted to Rs 4,062.51 crore, lower than turnover of Rs 4,336.14 crore registered on last Friday.