Markets remained volatile in late noon trades as the Sensex slipped into the negative terrain once again.
The BSE benchmark, after touching a high of 19,742 slipped to a low of 19,620. The index ended up 7 points at 19,642.
Nifty ended up 3 points at 5,943.
Domestic bourses followed Asian markets as they edged higher this morning, after economic data triggered optimism for the region's exports and economies.
Japanese trade data showed that the country's exports grew 6.4% in January, a faster pace than expected.
Still, Japan's trade deficit hit a record 1.629 trillion yen ($17.4 billion).
The latest data showed that foreign direct investment in China fell 7.3% in January from year-earlier levels.
The Nikkei added 0.8% at 11,468. Hang Seng and Shanghai Composite advanced 0.7% each.
European shares retreated on Wednesday after the previous session's sharp gains, digesting a crop of weak corporate earnings and as traders cited caution ahead of the minutes to the US Federal Reserve's January policy meeting.
The Budget session of the Parliament is set to begin tomorrow. This will follow the Railway Budget on February 26, Economic Survey of India on February 27 and the Union Budget 2013-14 on February 28, 2013.
"We expect the finance minister's focus would be to garner more revenue by widening the tax base. A surcharge of 10% on high income group (15lakh per annum onwards) may be introduced in the budget 2013-14 on the line of higher taxation on the wealthy in the US," said Anand Rathi is a report.
Credit Suisse has upgraded Ranbaxy Laboratories Ltd to "neutral" from "underperform".
The investment bank says the possible penalty related to the recall of generic Lipitor last year in the United states was likely to be "low."
The stock has already factored in the impact.
The Ministry of Petroleum and Natural Gas on Monday said that the under-recovery on High Speed Diesel (HSD) applicable for the 2nd fortnight of February 2013, effective from 16 February 2013, has increased to Rs 10.27 per litre from Rs 9.22 per litre for the 1st fortnight of February 2013. BSE oil & gas index surged 1.6% to 9,161.
The realty index also gained followed by IT index. However, BSE consumer durables index shed 1%, followed by FMCG, Metal and bankex.
Reliance Industries gained 3.5% at Rs 878 on news that the company and its two partners- BP and Niko Resources plan to invest over $5 billion over the next three to five years in the KG-D6 block to develop around 4 trillion cubic feet of discovered natural gas reserves.
IT stocks edged higher. Infosys was flat at Rs 2,818.
Earlier in the day it had surged on news that it will be the first Indian company admitted to trading on NYSE Euronext's (NYX) London and Paris markets from Wednesday, 20 February 2013.
Infosys will trade on NYSE Euronext under the ticker symbol INFY.
India's largest information technology services provider, Tata Consultancy Services (TCS), said it is expanding operations in Britain. A new facility at Liverpool is to be fully operational in July, with about 300 employees. The stock was up 0.6% at Rs 1,452.
Among other key gainers were Hero MotoCorp, Coal India and Gail. However, weakness could be seen in Cipla, Tata Motors and Jindal Steel.