The Bombay Stock Exchange (BSE) sensex finished flat on Wednesday after a subdued opening following Tuesday's terrorist attack on a temple in Gujarat.
However, renewed buying in technology stocks absorbed the early losses. The sensex ended 1.17 points lower at 3,021.08, after sinking to a low of 2,973.97 during opening deals.
"The market showed strength, despite the Gujarat tragedy and poor global markets, but the undertone is bearish and investors are praying that things don't get out of hand," the chief dealer of a local brokerage house said.
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Meanwhile, at the National Stock Exchange, the S&P CNX Nifty index ended with a modest gain of 3.85 points at 970.05. Losers outnumbered the gainers on falling volumes.
Technology major Infosys Technologies advanced 1.78 per cent to Rs 3,467.65 on bargain hunting at lower levels.
Satyam Computer also rallied 2.46 per cent to Rs 216.75, while HCL Technologies added 2.10 per cent to Rs 208.85 on renewed buying.
Dealers said technology stocks witnessed buying support on higher Nasdaq futures. Meanwhile, media major Zee Telefilms bounced back, recovering from the day's low of Rs 83, on renewed buying interest after the company said its subscription revenue growth stayed healthy.
The stock settled 4.15 per cent higher at Rs 89.10. But most old economy companies finished lower. FMCG major Hindustan Lever tumbled 0.51 per cent to Rs 176.15 on selling pressure.
Other key stocks such as State Bank of India (down 0.47 per cent to Rs 231.80), ITC (down 0.26 per cent to Rs 656.80) and Reliance Petroleum (down 0.22 per cent to Rs 23) also settled weak on selling pressure.
However, Reliance Industries recovered from an intraday low of Rs 251 to Rs 255.90 before settling at Rs 255.35, up 0.31 per cent over Tuesday's close.
Cement major Larsen & Toubro shed 2.57 per cent to Rs 174.65 on sustained selling. Gujarat Ambuja fell 1.22 per cent to Rs 165.95, Grasim was down 0.97 per cent to Rs 311.45, while ACC slid 0.29 per cent to Rs 136.55.
Elsewhere, Bharti Tele-Ventures advanced 1.44 per cent to Rs 31.60 on a block deal of 13.50 lakh shares struck at Rs 35.35 per share. Over 16.38 lakh shares of the company changed hands today.