The Indian equities were trading on flat note with slightly negative bias in noon session of day's trade as slew of negative development from China and Greece affected market performance.
The investors also awaited first quarter earnings of TCS which will set direction for the market.
Early today, Sensex rebounded over 100 points amid value buying in selected blue chip stocks, but soon pared its gain and slipped into negative terrain.
At 12:20 hours, the BSE benchmark SENSEX was trading at 27648.9, down by 38.82 points, or by 0.14 points, while the NSE Nifty was quoting 9.2 points lower at 8353.85.
The D-Street witnessed lackluster trade as investor"s maintained wait and watch approach ahead of corporate earnings season that kicks off today with IT bellwether TCS and Bajaj Corp set to unveil their April-June quarter report cards today.
The caution also prevailed ahead of tomorrow"s industrial output data for May which may show that factory growth probably slowed to 3.6 per cent following 4.1 per cent in April, coupled with lingering concerns over China and Greece.
Analysts have warned that April-June 2015 may have been yet another disappointing quarter for India Inc. with earnings growth likely to have remained lackluster without a meaningful pickup in corporate investment, prompting a cautious approach by investors at Dalal Street.
In the choppy trade so far, the BSE Sensex touched intraday high of 27798.13 and intraday low of 27625.81, while the NSE Nifty touched intraday high of 8400.3 and intraday low of 8343.55.
Leading the decline in the BSE Sensex pack were Vedanta Ltd. (Rs. 142.50,-2.46%), Tata Motors Ltd. (Rs. 398.25,-1.70%), Tata Consultancy Services Ltd. (Rs. 2553.50,-1.56%), Bajaj Auto Ltd. (Rs. 2534.00,-1.55%), Infosys Ltd. (Rs. 943.55,-1.43%), among others.
Meanwhile, Bharat Heavy Electricals Ltd. (Rs. 261.30,+2.39%), Bharti Airtel Ltd. (Rs. 438.90,+2.22%), Larsen & Toubro Ltd. (Rs. 1836.00,+1.76%), Hero MotoCorp Ltd. (Rs. 2597.50,+1.75%), Hindalco Industries Ltd. (Rs. 103.20,+1.43%), were among top gainers on BSE.
Among the thirteen sectoral indices, IT index was top loser and was trading at 10290.07, down by 108.01 points, or by 1.04 per cent.
Cressanda Solutions Ltd. (Rs. 3.89,-4.89%), PFL Infotech Ltd. (Rs. 55.00,-1.96%), Sonata Software Ltd. (Rs. 131.90,-1.57%), Tata Consultancy Services Ltd. (Rs. 2553.50,-1.56%), eClerx Services Ltd. (Rs. 1476.00,-1.43%), were among other losers.
The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2478, shares advanced were 1546 while 856 shares declined and 76 were unchanged.
On the global front, Asian peers were trading higher with markets in China rising for the first time in three days as officials took further measures to arrest an equity rout that has wiped out more USD 3 trillion of value.
While Hang Seng also rebounded after a severe dip in the previous session, Japanese stocks remained under pressure as an investor flight to the safety of the yen dimmed the lure for exporter stocks.
Meanwhile, Greece has until tonight to submit fresh economic reform measures including spending cuts to press for a new bailout and convince European leaders to keep the cash-strapped country in the euro.