The Sensex and the Nifty ended the day flat after trading in negative territory for most of the day, despite WPI inflation falling to a 5-year low.
The Sensex ended the day with losses of 34 points, while the Nifty closed the day with gains of 20 points.
Shares in Reliance Industries rallied one per cent as results of the company came in better than expected. On the other hand DLF fell a huge 25 per cent after its promoters were barred from accessing the capital markets.
The clear winners in trade were the PSU Banking stocks. Among those leading gainers were Bank of India, Oriental Bank of Commerce, Andhra Bank and Syndicate Bank.
UPL too saw buying interest after the RBI said that FIIs/RFPIs can now invest up to 74 percent in the company.
Mid cap stocks also saw some buying interest with Karnataka Bank and Steel Authority of India among the winners.
Meanwhile, markets in Europe continued to fall as economic data continued to cause worries. The German FAX, French CAC and the UK's FTSE were all lower in trade.