Benchmark indices hit record highs during intra-day trades but squandered all their gains to end flat amid concerns over high valuations in a lacklustre earnings scenario. Market players were also cautious ahead of the US Fed’s decision on interest rates and a stream of corporate results later this week.

The 30-share Sensex opened on a promising note at 81679.65 and surged more than 575 points to touch a historic intra-day peak of 81908.43.

However, profit booking particularly in technology and banking counters saw the index giving up most of the gains and close with marginal gain of only 23.12 points at 81355.84.

On the NSE, the Nifty came closer to the 25000 mark when it touched a record high of 24999.75. It ended only 1.25 points higher at 24836.10, an all-time closing high.

Larsen & Toubro rose the most among the Sensex stocks: it shot up 2.77 per cent after it announced large orders worth ₹2,500 crore to ₹5,000 crore.

ICICI Bank, which announced better than expected results on Saturday, ended up 0.53 per cent at ₹1,214.15 after rising 2.87 per cent to ₹1,242.45.

In the losing side, Titan Ltd fell the most, 2.38 per cent. Bharti Airtel (2.22 per cent), ITC (1.33 per cent), Kotak Mahindra Bank (1.04 per cent) and HDFC Bank (0.68 per cent) also ended in the red.

Investors also sold IT stocks ahead of the two-day Fed meeting which commences on Tuesday. Tech Mahindra, TCS, Infosys, and HCL Tech fell up to 1 per cent ahead of the meeting which is largely expected to retain the interest rates. However, the key focus will be on its guidance as to whether interest rates will be reduced from September.

The markets are also awaiting several key quarterly results — such as ITC, Tata Steel, Adani Enterprises and SBI — that will likely have stock-specific impact.

“The Nifty was just a kiss away from the 25k mark. Once the index crosses the psychological level, we believe sentiments will get a further boost. This week market will focus on the central banks’ policy meeting globally as the US Federal Reserve, Bank of England, and Bank of Japan will announce their decision,’’ Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services, said.

“Interest-sensitive sectors including banking will remain in focus. Overall, we expect the market to continue its gradual uptick, however, volatility cannot be ruled out ahead of key events,’’ he added.

An analyst with a foreign brokerage said any dovish guidance from the Fed could lead to a global rally.