Equity benchmarks erased almost all its gains in last hour of trade to end flat.
The Nifty failed to hold 7750 level, rising 3.20 points to 7738.40. The Sensex gained 3.28 points at 25341.86. IT and FMCG stocks supported while infra and select banks stocks dragged.
European markets remained under pressure from opening, down 0.5-1 per cent after fall in oil prices. About 1310 shares advanced against 1241 declining shares on BSE.
The recent volatility in equity markets globally was driven largely by a sucking out of and reversal in liquidity but economic fundamentals continue to improve at a slow but steady pace, says Prabhath Awasthi of Nomura.
"Parts of the economy has picked up strongly. If you look at data for electricity, cement, cars [they are pointing to improvement in the economic cycle]," Awasthi, India MD and Head of Equities at Nomura, said. Conceding that while fiscal year 2016 was 'terrible', Awasthi said he expects earnings to increase 12-15 percent in FY17 -- possibly with a further upside risk -- on the back of low base, upturn in the commodity cycle and receding of pain in the banking system.