The BSE Sensex and NSE Nifty were trading on a cautious note in morning trade on Wednesday amid growing uncertainty over US-China trade talks and unabated foreign fund outflows. Equity indices were largely flat amid volatile trading during early hours.
The 30-share index was trading 36.04 points or 0.10 percent higher at 37,568.02 in the early trade; while the broader Nifty was almost flat with positive bias at 11,127.40, showing a marginal gain of 1.00 points or 0.01 percent.
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Top Sensex gainers in the early session included ICICI Bank, Kotak Bank, L&T, M&M, IndusInd Bank, Asian Paints and HDFC Bank, rising up to 1.39 percent.
On the other hand, top losers were Yes Bank, HCL Tech, ONGC, Hero MotoCorp, TCS, Tata Steel and Infosys, falling up to 8.33 percent, a PTI report said.
Shares of Glenmark Pharma declined over 1 percent intraday. The company has received tentative approval by the United States Food and Drug Administration (USFDA) for Dimethyl Fumarate delayedrelease capsules. The approval to Glenmark Pharmaceuticals Inc, USA has been granted for 120 mg and 240 mg of Dimethyl Fumarate delayedrelease capsules, a generic version of Tecfidera capsules of Biogen Inc, the company said in a BSE release.
Stock markets were closed on Tuesday on account of 'Dussehra'.
On Monday, the Sensex settled at 37,531.98 points, down by 141.33 points or 0.38 percent as 24 of its components posted losses. Broader NSE Nifty dropped by 48.35 points or 0.43 percent to close at 11,126.40.
Ahead of scheduled high-level trade talks between the US and Chinese officials on Thursday, Washington announced restrictions on 28 Chinese entities over human rights violations. The fresh developments weighed heavily on investors' sentiments globally.
In addition, the International Monetary Fund has forecasted the weakest growth in a decade following tariff disputes.
Foreign institutional investors (FIIs) remained net sellers in equities, offloaded shares worth Rs 494.21 crore on a net basis on Monday, according to provisional exchange data. On Friday, FPIs had sold equities worth Rs 682.93 crore on net basis.
The rupee, meanwhile, depreciated by 9 paise to 71.11 against the US dollar in early session.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were trading lower, while those in Seoul were trading in the green.
Asian stocks fell the most in a week on Wednesday as the United States and China's broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.44 percent. Chinese shares fell 0.47 percent after briefly touching a five-week low. Australian shares were down 0.76 percent.
The US Treasury yield curve steepened in Asia after US. Federal Reserve Chair Jerome Powell signaled further interest rate cuts and the resumption of bond purchases to address a recent spike in money markets rates.
Oil prices extended declines as US visa restrictions on Chinese officials and the addition of more Chinese companies to a US trade blacklist weighed on already slim hopes that Washington and Beijing could reach a truce at trade negotiations this week.
The United States and China are engaged in a year-long row that has slowly expanded beyond trade policy, suggesting even more damage to an already fragile global economy.
"Stock markets are still trying to price in the slowdown in global growth," said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo. "The dispute between the United States and China shows no sign of ending. We're losing confidence in the U.S. economy. There's more uncertainty about where the Fed is really headed."
US stock futures ESc1 rose 0.22 percent in Asia, but sentiment was weak after the S&P 500 ended 1.56 percent lower on Tuesday in response to the US visa restrictions.
Japan's Nikkei slid 0.7 percent, its biggest decline in a week. Hong Kong shares fell 0.52 percent, nearing a four-week low due to persistent worries about the often violent protests against China's rule of the former British colony.
Shares fell in Apple Inc's suppliers in Greater China, such as Luxshare Precision and O-Film Tech, after China's state media criticized the iPhone maker for an app use by Hong Kong protesters.
Brent futures, the global oil benchmark, fell 0.33 percent to $58.05 per barrel.
--With inputs from agencies