The Sensex and the Nifty opened the day lower, but managed to recover most of the early losses and were trading flat ahead of F&O expiry.
The Sensex was trading with losses of 24 points, while the Nifty was down 14 points in trade. PSU Banking stocks were the major losers in trade with PNB, Bank of Baroda and State Bank of India among the early losses.
IT stocks also did not lend any support to the markets and were trading lower with TCS, Wipro and HCL Tech seeing selling pressure.
Shriram City lost as much as 3 per cent in trade after Goldman Sachs terminated coverage on the company with a final rating of sell.
Sun TV which saw huge selling pressure of almost 10 per cent on Wednesday recovered some lost ground on short covering. The stock was up almost 2 per cent in early trade.
Midcap stocks were also down in line with the broad markets. Stocks like Canara Bank and KPIT were the biggest losers from the space. Bhel and Hero Motor Corp were the top gainers from the Nifty.
Meanwhile, markets across Asia were trading with losses, on worries that Greece may default over its debt obligations.