Fag-end profit booking by funds, triggered by weak opening in European markets, wiped out early gains at the domestic bourses on Friday, with the Sensex closing flat despite a drop in inflation.

European indices were down by about one per cent in early trade after global credit worries re-emerged with a leading UK-based mortgage lender issuing a profit warning. Initially, the Bombay Stock Exchange (BSE) 30-share index jumped by 210.21 points to the day’s high of 15,824.65, a few points away from its record high of 15,868.85, buoyed by a surge in Asian indices following a rally on Wall Street. However, the late sell-off pulled down the BSE barometer to end the day at 15,603.80, a net fall of 10.64 points or 0.07 per cent from Thursday’s close of 15,614.44. Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) fell by 10.95 points or 0.24 pc ending at 4,518 from Thursday’s 4,528.95.

Investors unloaded their positions after making hectic purchases during morning session, due to weak European markets. Bank and realty shares bucked the trend and registered handsome gains on low inflation and possibility of interest rate cut.