Mumbai, Jan 13 (IANS): The rally in the Indian stock market eased on Wednesday as the indices shed gains post touching fresh record levels in a largely volatile trade session.

Traders booked profits after the continuous rise in the market, analysts said.

Volatility in the market can be gauged from the fact that Sensex traversed over 700 points, between its intra-day high and low levels.

The net FII inflow stood at Rs 1,879.06 crore, while the net DII outflow during the day was Rs 2,370.17 crore.

Earlier in the day, BSE Sensex hit an all-time high of 49,795.19 and the Nifty50 on the National Stock Exchange (NSE) touched a record high of 14,653.35 points.

The Sensex closed at 49,492.32, lower by 24.79 points, or 0.05 per cent, from its previous close of 49,517.11.

The Nifty50 on the National Stock Exchange closed flat at 14,564.85 points.

Deepak Jasani, Head of Retail Research at HDFC Securities, said: "Post 12.50 p.m. a steeper selloff, probably basket selling by an institution, followed. However, due to lack of follow-up selling, markets recovered to close almost flat at the end of the day."

Among sectors, PSU banks, bank Nifty and autos were the main gainers while pharma was the main loser.

Jasani said that Asian stocks mostly rose on Wednesday, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fueled recovery hopes, while oil prices touched a one-year high.

"European stocks fought for traction on Wednesday, as investor focus remained on Covid-19 vaccines and rising infections across the region," he said.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said: "We are of the view that, the bulls are still in total control but daily chart showing temporary pause near 14,650/49,700, hence, traders may prefer caution near resistance level."