The Bombay Stock Exchange benchmark Sensex failed to maintain early gains as investors booked profits at higher levels ahead of the release of data on inflation and industrial production later in the day.
The Sensex was quoted at 15,786.62 at 1030 hrs, up 91.52 points from its last close of 15,695.10, but sharply down from its early high of 15,897.11.
The broader 50-share S&P CNX Nifty of the National Stock Exchange was up 30.30 points or 4,763.30 at 1030 hrs from its previous close of 4,733.00.
Investors adopted a cautious approach on concerns over high inflation, with the government admitting that rising food prices would make the task of containing inflation a more difficult exercise, brokers said.
Prime Minister Manmohan Singh said yesterday that the rising food prices may hurt economic growth and reforms process, but ruled out any "blind controls" to rein in the increasing rates.
Attributing initial surge to encouraging global cues, brokers said high inflation would force the government to take stringent monetary measures, including hike in the CRR, which could affect the market sentiment.