After swinging around 646 points during the day, the 30-share BSE Sensex settled 42.07 points or 0.09 per cent higher at 49,201.39. The broader NSE Nifty advanced 45.70 points or 0.31 per cent to 14,683.50.

Asian Paints was the top gainer in the Sensex pack, rising 4 per cent, followed by Sun Pharma, HUL, HDFC, Dr Reddy’s, Nestle India and M&M.

On the other hand, PowerGrid, Axis Bank, IndusInd Bank, UltraTech Cement and ICICI Bank were among the laggards.

Domestic equities were quite volatile and gave up most initial gains as sharp spike in COVID-19 cases across the country and resultant mobility restrictions continued to weigh on investors’ sentiments, said Binod Modi, Head - Strategy at Reliance Securities.

Sharp spike in COVID-19 cases and localised lockdowns have dented investors’ sentiments, he noted, adding that domestic markets are expected to remain volatile in the near term until the coronavirus spread is controlled.

Elsewhere in Asia, bourses in Shanghai and Tokyo ended in the red, while Seoul was in the positive terrain.

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

Meanwhile, the global oil benchmark Brent crude was trading 2.43 per cent higher at USD 63.66 per barrel.