However, strong action was seen in midcap and smallcap space. The BSE midcap and smallcap indices on the BSE rose nearly 0.90 per cent.
Airline stocks were in focus after a sharp cut in aviation fuel prices. Jet Airways surged 8.2 per cent, SpiceJet gained 9.4 per cent and InterGlobe Aviation jumped 9.7 per cent.
Most of the analysts expect 2016 to be a better year for Indian markets. Global brokerages Macquarie and Goldman expect Nifty to hit 9,200 and 9,000 by the end of 2016.
3:00 p.m.: Auto stocks outperform today. Tata Motors and Eicher Motors rise nearly 2.5 per cent.
2:45 p.m.: Good time to enter markets, says Taher Badshah, fund manager at Motilal Oswal AMC, 2016 is likely to be a better year in terms of market and earnings performance, he says.
2:30 p.m.: Gaurang Shah of Geojit BNP Paribas on his preferred sectors for 2016. "IT, pharma will do well, private sector banks in the second half of the year will do well and cement will do well on infra spending."
1:45 p.m.: Sensex trades marginally higher but midcap and smallcap stocks show strong gains. BSE midcap, smallcap indices gain nearly 0.80%
1:20 p.m.: Anand Tandon, director equities at Brics Securities, says IT stocks could surprise on the upside this year. He believes 15 per cent growth in earnings is achievable as the rupee will continue to weaken for next six months. Also the growth in US is expected to be more robust in the BFSI sector to the benefit of Indian IT companies, he added. (Read here)
12:40 p.m.: IT shares continue to weigh on markets. BSE IT index trading 0.40 per cent lower with HCL Tech, Wipro, Infosys and TCS among major Nifty losers
12:10 p.m.: Airline stocks surge on a sharp cut in aviation fuel prices. Shares of InterGlobe Aviation jump 11 per cent, SpiceJet 12 per cent and Jet Airways 8 per cent
11:20 a.m. Markets edge higher in early noon trade: Sensex up nearly 20 points, Nifty near 7,950
11:15 a.m. Maruti Suzuki December sales at 1.19 units, up 8.5% year-on-year; shares up 0.84%
10:20 a.m. Shares of Corporation Bank gained as much as 4 per cent to touch Rs 44.50 as the bank announced issuance of 2.8 crore shares worth Rs 143 crore to the Life Insurance Corporation of India on a preferential basis. The shares were issued at price of Rs 50.78, which is a premium of nearly 20 per cent from Thursday's close of Rs 42.05.
9:20 a.m.: Sensex edges lower, slips nearly 100 points. Nifty near 7900. Selling pressure seen in IT and oil & gas stocks in particular. Infosys, ONGC, Sun Pharma among top losers.
9:01 a.m.: Rupee opens lower at 66.18/dollar against Thursday's close of 66.15
8:57 a.m.: Most global markets are closed today. On the Wall Street, the Dow Jones industrial average fell 1 per cent overnight.
8:56 a.m.: Fund activity in 2015: Foreign institutional investors bought Indian shares worth Rs 1,725 crore on a net basis. Domestic institutional investors bought a whopping Rs 67,241 crore.
8:53 a.m.: IDBI Bank will be in focus with lender getting approval for raising Rs 3,771 crore by way of qualified institutional placement (QIP). (Read here)
8:00 a.m.: Auto stocks will be in focus as the manufacturers announce their December sales numbers.
7:20 a.m.: Markets set to open lower, SGX CNX Nifty trading 0.28 per cent lower at 7,926
7:15 a.m.: Indian shares ended 0.6 percent higher in choppy trade on Thursday, but posted their first yearly loss in four.
On Thursday, the Nifty ended 0.63 per cent higher, above the psychologically important 7,900 mark. The index has lost 4.06 per cent in 2015 after three consecutive years of gains.
The benchmark Sensex rose 0.61 per cent to end above the crucial 26,000 level. The index has lost 5.03 per cent in 2015, its first annual loss since 2011.