Benchmark indices inched higher but were trading on a volatile note in early trade amid rising trade tensions between the US and China as talks between the two countries ended without any significant outcome.
The BSE Sensex was trading at 58.61 points, or 0.15 percent, higher at 38,395.37. The index had hit a high of 38,428.99, rising 92.74 points, or 0.24 percent, in the opening session.
The gauge had gained 673.20 points in the past four sessions.
The wider NSE Nifty too rose 21.85 points or 0.18 percent to 11,604.60.
Brokers said besides profit-booking at record levels, a mixed trend at other Asian markets following negative leads from Wall Street dented the trading sentiment here.
Investors are also cautious ahead of Federal Reserve Chairman Jerome Powell speech at the annual global central bank conference in Jackson Hole later in the day.
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Major gainers include PowerGrid, Axis Bank, Coal India, SBI, NTPC, Tata Steel and M&M with up to 1.58 percent gains.
While, ICICI Bank, Bharti Airtel, IndusInd Bank, Infosys, Wipro, Yes Bank, HUL and Sun Pharma fell up to 1 percent.
Domestic institutional investors (DIIs) bought shares worth a net of Rs 142 crore, while foreign portfolio investors (FPIs) accumulated shares worth a net of Rs 433.21 crore on Thursday, provisional data showed.
Asian stocks were mixed, tracking overnight losses on the Wall Street.
Hong Kong's Hang Seng was down 0.81 percent, Shanghai Composite Index fell 0.28 percent, while Japan's Nikkei was up 0.31 percent in early trade.
The US Dow Jones Industrial Average ended 0.03 percent lower in Thursday's session.