Indian share prices closed flat on Tuesday as overseas funds sold selectively in Sensex and mid-sized stocks, with fears of higher crude oil prices impacting on sentiment, dealers said.
They said the market opened after a holiday Monday to celebrate Independence Day, but trading volumes were low as funds and operators declined to take large positions in key stocks.
Banking and automobile stocks faced selling pressure.
The benchmark 30-share Sensex index closed 0.75 points up or 0.01 percent at 7,768.24. Volumes totalled 29.06 billion rupees (668 million dollars) with 1,806 shares gaining and 709 shares declining.
"Buying was sporadic and selective. The markets are re-assessing the impact of a further rise in global crude. We expect some funds to stay away at this stage and book profits," said Atul Hatwar of brokerage Crosseas Securities.
"The undertone remains strong, but an upswing will be a slow process," he said.