The Nifty is down 3.1 per cent since hitting a record high on April 25, as investors have reduced some of their positions ahead of the conclusion of elections.
The FII's index futures worth Rs. 512 crore, turning sellers for the six out of the last seven sessions.
Market is preparing for the election outcome. We can see selective profit-taking and selective position building. Market continues to trade cautious and we will see a definitive directional move after the election outcome.
The Sensex gained 0.1 per cent to 22,344.04, while the broader Nifty ended 0.11 per cent higher at 6,659.85.
Local markets were helped by Asian markets, which gained on dovish comments by the US Federal Reserve chair Janet Yellen and upbeat Chinese trade data that suggested some signs of stabilisation in the world's second-largest economy.
Some battered shares rose, with Wipro gaining 0.96 per cent after losing 11.6 per cent since April 16 till Wednesday.
Metal stocks gained, with Hindalco Industries ending 1.2 per cent higher and Tata Steel gaining 0.53 per cent on hopes for revival in Chinese demand.
Profit booking happened in Reliance Industries falling 0.1 per cent after gaining 3.5 per cent in the previous three sessions. Bharti Airtel ended 0.96 per cent lower. The stock fell for the eighth straight session after its earnings fell short of expectations of some investors.
Housing Development and Finance Corp fell 0.3 per cent, falling for the fourth straight session after its earnings disappointed some investors. The stock had declined 6.4 per cent in the last three sessions.