After swinging 266 points during the day, the 30-share Sensex ended 21.47 points, or 0.05%, higher at 40,345.08
Domestic equities ended marginally higher after a volatile session on Monday, with banking stocks coming to the rescue.
Benchmark indices Sensex and Nifty fought bouts of volatility triggered by a sharp fall in Asian equities amid escalating political tensions in Hong Kong and uncertainty over the U.S.-China trade deal.
After swinging 266 points during the day, the 30-share Sensex ended 21.47 points, or 0.05%, higher at 40,345.08.
Similarly, the broader NSE Nifty advanced 5.30 points, or 0.04%, to end at 11,913.45.
Yes Bank was the top gainer in the Sensex pack, rising 5.80%, followed by Tata Motors, ICICI Bank, IndusInd Bank, Axis Bank, Kotak Bank and Tata Steel.
On the other hand, Hero MotoCorp, Vedanta, TCS, RIL, Asian Paints, Maruti and M&M fell up to 2%.
Indian market will be closed on Tuesday for Guru Nanak Jayanti.
Weak cues from global markets kept investors on edge during the day, traders said.
Participants also keenly awaited the release of the monthly industrial production data, they said.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 2.62% lower as investors got spooked by violent protests in Hong Kong.
Meanwhile, U.S. President Donald Trump said he has not agreed to roll back tariffs on Chinese imports, dampening recent optimism for a major de-escalation in the U.S.-China trade war.
Exchanges in Europe were trading on a mixed note in their respective early deals.
In the forex market, the Indian rupee depreciated by 18 paise to 71.47 against the U.S. dollar intra-day.
Brent crude futures, the global oil benchmark, fell 1.04% to $61.87 per barrel.