The 30-share index shed 22.72 points, or 0.11 per cent, to 19,982.28 with stocks of oil and gas, capital goods and auto leading the fall.

The index had gained 14.10 points in the previous session.

Similarly, the wide-based National Stock Exchange Nifty down 4.30 points, or 0.07 per cent, to 6,051.45.

Brokers said squaring-up of positions by participants as today being the last session of current month expiry in the derivatives segment, mainly dampened the sentiments.

Besides, a weak trend in the Asian region following overnight losses at the US markets after data showed the world's biggest economy unexpectedly shrank in the last quarter of 2012, too, had its shadow, they said.

Meanwhile, in Asia, Hong Kong's Hang Seng index declined by 0.10 per cent, while Japan's Nikkei by 0.61 per cent in opening trade.

The US Dow Jones Industrial Average ended 0.32 per cent lower in yesterday's trade.

Stocks to watch-Jan 31

(Reuters): GLOBAL MARKETS ROUND UP

Nifty futures on the Singapore Exchange was flat. The MSCI-Asia Pacific index, excluding Japan was fell 0.5 percent.

Asian shares pulled back on Thursday from recent gains but sentiment was underpinned by optimism about global growth after the Federal Reserve kept its stimulus policy and by signs of stabilisation in the euro zone.

U.S. stocks fell on Wednesday after the Federal Reserve said in its latest statement that economic growth had stalled but indicated the pullback was likely temporary. FACTORS TO WATCH

ICICI Bank Ltd, Bharti Infratel Ltd October-December earnings April-December fiscal deficit

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

India's central bank will base rate cut decisions on the current account position in addition to inflation, governor Duvvuri Subbarao said on Wednesday.

State Bank of India has cut its key lending rate, or base rate, by 5 basis points, R. Venkatachalam, deputy managing director at the bank, told Reuters on Wednesday. HDFC Bank Ltd has decided to slash auto loan rates by up to 0.5 percent.

India's market regulator has barred Angel Broking from taking on new customers for two weeks and set penalties on three other small brokerages for artificially boosting trading volumes in shares of a software developer more than a decade ago. ENERGY/COMMODITIES

India's government does not currently plan additional taxes or curbs on imports of gold as it waits to see the impact of recent tax hikes, a top finance ministry official told Reuters on Wednesday.

The government is set to significantly cut the subsidy it offers on non-urea fertilizers for the second time in 12 months, according to two government officials with direct knowledge of the matter.

The Delhi High Court has set aside an order of the Chief Information Commission directing stock market regulator SEBI to share details of a 2007 probe into charges of alleged insider trading involving shares of Reliance Petrochemicals, which later merged with Reliance Industries Ltd.

Power Finance Corp Ltd's October-December net profit rose 0.8 percent to 11.17 billion rupees from a year ago.

The Chhattisgarh government is considering scrapping Indiabulls Power Ltd's 1,320 megawatt (Mw) power project at Bhaiyathan, a senior state government official told Business Standard on condition of anonymity.

India is likely to produce around 24 million tonnes of sugar in the year beginning Oct. 1, Food Minister K.V. Thomas said on Wednesday.

RETAIL

Burger King has held fresh discussions with Everstone Capital to revive its India entry plans.

TELECOMS

Vodafone India said it would challenge the upcoming spectrum auctions, and said the sale process was illegal and discriminatory.

Indian income tax officials have sent an interim report on the tax evasion charge against the Indian unit of Nokia to the department's headquarters in New Delhi on Wednesday.

AUTOS

Hyundai Motor Co will be launching an all-new compact car in India.

AIRLINES

Jet Airways India Ltd has given a wage hike of up to 18,000 rupees to its around 7,500 rupees ground staff, sources said.