The Sensex opened 12 points higher at 5,590, and crossed the crucial level of 5,600 mark as further buying in select old and new economy stocks lifted the index to an intra-day high of 5,616 in early deals.

The markets displayed range-bound trend thereafter, and switched between positive and negative zones for better part of the trading session as the expiry of the December series futures contracts on Wednesday kept most of the sectors at lower levels.

The markets received further jolt towards the closing hours as sharp correction in heavyweights, PSUs and pharma stocks dragged the index to a low of 5,551.

The Sensex finally ended with a loss of 14 points at 5,564. The Nifty, after displaying mixed trends through the session, ended nine points lower at 1,780.

BHEL (down Rs 9 or 2% to Rs 477), MTNL (down Rs 4 or 3% to Rs 124) and SBI (down Rs 2 to 506) ended at lower levels on selling pressure. HPCL, however, sneaked into positive zone towards the closing hours, and added Rs 2 to Rs 415.

ITC declined a per cent (Rs 10) to Rs 975. Reliance, too, closed down a per cent at Rs 523 - down Rs 3. HLL, however, ended on a flat note at Rs 200.

Ranbaxy lost ground since opening deals, and slumped 3% (Rs 36) to Rs 1,083. The pharma major received the USFDA nod to market the anti-infective Cefaclor Tablets, Chewable, in 125 mg, 187 mg, 250 mg and 375 mg strengths.

Cipla lost a per cent (Rs 17) to Rs 1,251.

Dr Reddy's Labs (up Rs 14 to Rs 1,390), however, remained steady on selective buying interest after the US FDA on Friday gave tentative approval to the company for sale and manufacture of terbinafine hydrochloride tablets.

Infosys, after a steady opening, rose sharply on sustained buying support to end 2% higher (Rs 131) at Rs 5,460. Wipro and Satyam, however, ended a per cent lower each at Rs 1,654 (down Rs 21) and Rs 354 (down Rs 5), respectively.

Gujarat Ambuja and ACC closed up a rupee each at Rs 299 and Rs 232, respectively. Grasim, however, dropped 2% (Rs 21) to Rs 976. L&T was down a per cent (Rs 3) at Rs 489.

Bajaj remained firm in a lacklustre market, and spurted 4% (Rs 41) to Rs 1,150. Hero Honda, too, attracted considerable buying support, and moved up 2% (Rs 10) to Rs 418. Tata Motors, however, slipped from higher levels, and closed down a rupee at Rs 432.

Zee notched up around 5% gains (Rs 7) to Rs 159 in an otherwise lacklustre market.

ONGC shed nearly 3% (Rs 21) to Rs 739.