The benchmark indices gave up their opening gains to trade flat to weakly negative in the morning session on Friday.
The Sensex was at 38,838, down 2 points, while the Nifty was up 6 points at 11,455.
The top gainers on the Sensex were Tech Mahindra, TCS, Bajaj Finance, Titan and M&M. The laggards were IndusInd Bank, Asian Paints, Power Grid, Nestle India, and ONGC.
PTI adds: In the previous session, Sensex ended 646.40 points or 1.69 per cent higher at 38,840.32. The NSE Nifty rallied 171.25 points or 1.52 per cent to 11,449.25.
Exchange data showed that foreign institutional investors bought equities worth Rs 838.37 crore on a net basis on Thursday.
Domestic equities opened on a positive note tracking stock-specific action and fresh foreign fund inflow, traders said.
Further, investor sentiment buoyed after India and China agreed on 5-point roadmap for resolving border standoff in Ladakh.
During the talks between External Affairs Minister S Jaishankar and his Chinese counterpart Wang Yi, India and China have agreed on a five-point roadmap including quick disengagement of troops and avoiding any action that could escalate tensions for resolving the four-month-long face-off in eastern Ladakh.
Meanwhile, bourses in Hong Kong and Tokyo were trading with gains in mid-day deals, while Shanghai and Seoul were in the red.
Stock exchanges on Wall Street ended with heavy losses in overnight trade.
Global oil benchmark Brent crude was trading 0.45 per cent lower at $39.88 per barrel.