The 30-share BSE Sensex ended 31.12 points or 0.06 per cent lower at 50,363.96, and the broader NSE Nifty slipped 19.05 points or 0.13 per cent to 14,910.45.

L&T was the top loser in the Sensex pack, shedding 1.56 per cent, followed by ICIC Bank, SBI, Kotak Bank, HDFC Bank, NTPC, Axis Bank and Bajaj Finserv.

On the other hand, Asian Paints, Dr Reddy’s, HCL Tech, HUL and Bharti Airtel were among the gainers.

Domestic equities gave up initial gains and traded flat towards the final hours of the day despite favourable cues from global equities, said Binod Modi - Head Strategy at Reliance Securities.

"Financials once again dragged the markets. Notably, IT stocks were in focus today mainly on expectations of sustained earnings momentum in 4QFY21E and benefits from possible fall in INR.

"In our view, increasing concerns with regards to resurgence of COVID-19 cases in various parts of the country and resulted restrictions could be a near term risk for domestic markets. Additionally, volatile bond markets and soaring inflation will continue to weigh on investors'' sentiments," he added.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note.

Stock exchanges in Europe were also trading with gains in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.61 per cent lower at USD 67.77 per barrel.