Dealers said that the stock market opened for the day on a positive note after crossing the 6,300-mark for the first time in its history Thursday on large-scale institutional buying.

After showing a firm trend in the early trade as investor sentiment got a boost from easing global crude oil prices, the index turned range-bound on profit booking in heavyweight equities.

Mirroring the cautious sentiment, the stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 6,322.76, a loss of 5.67 points or 0.09 percent from its previous session's close.

The market had touched an all-time closing high of 6,328.43 Thursday, representing a gain of 100.60 points or 1.62 percent over its previous session's close to better its previous high of 6,234.29 touched Tuesday.

The stock market has soared sharply higher in the last one month on the back of massive inflows of foreign funds that have also touched record levels.              

"After the hectic gains of the last few sessions, the stock market was ripe for a correction that came in the form of profit taking today," said Deepak Shah, an analyst with Pranav Securities, a city-based brokerage firm.

"Investors also preferred to square up their long positions today ahead of the market closure for the week. The correction will give bulk investors an opportunity to rearrange their portfolio," Shah told IANS.

"But despite today's moderate loss, the overall market mood is very positive and I expect the rally to continue at least for the next couple of weeks. The inflow of foreign funds into the trading ring is still very strong."

Net investments by foreign institutional investors, which act as the backbone for India's liquidity starved capital market, have touched record levels in the current year.

Net overseas fund inflows have crossed $7 billion, the highest ever in any calendar year in the history of the Indian stock market. In 2003, foreign funds had pumped in funds worth $6.59 billion.

A slew of overseas fund managers are looking to make their fortune in India as Asia's fourth largest economy sheds its decades of casino-like stock trading practices in favour of world-class regulatory systems.

Adoption of stringent corporate governance norms by companies and easier investment guidelines are also helping foreign institutional investors to loosen their purse strings in India.     

In the technology sector, shares of Infosys Technologies, India's second largest software exporter, fell 1.5 percent to Rs.2,050.20 on institutional selling pressure at higher levels.

Hyderabad-based Satyam Computer ended 2.7 percent lower at Rs.412.30 and marquee software development and services major Wipro closed with a loss of 0.7 percent at Rs.749.55.

In the old economy sector, index heavyweight ITC lost 0.5 percent to touch Rs.1,280.05 and State Bank of India, the country's largest commercial bank, was down 0.8 percent at Rs.576.90.

--Indo-Asian News Service