The blue-chip NSE Nifty 50 index rose 0.01% to 15,576.20 at close, while the benchmark S&P BSE Sensex slipped 0.16% to 51,849.48.
Dragging the Nifty 50 on Wednesday, cigarettes-to-hotels conglomerate ITC Ltd fell 3% after it warned that pandemic-driven restrictions could cause supply chain disruptions in the near future.
India's total coronavirus cases surged past the 25 million mark on Tuesday. Daily cases rose by 263,533, remaining below the 300,000 mark for a second day, a level last seen on April 21, while deaths increased by a record 4,329.
The NSE Nifty 50 index dropped 0.94% to 14,496.5, while the benchmark S&P BSE Sensex closed 0.95% lower at 48,253.51, after swinging in choppy trading for most of the session.
The surge of the highly infectious Indian virus variant has swamped the health system, forced states to enter lockdowns and ignited calls for a lockdown at the national level.
The blue-chip NSE Nifty 50 index and the benchmark S&P BSE Sensex each fell 1.5% to 14,324.90 and 48,440.12, respectively. The indexes had dropped nearly 2% in the previous session.
"The uncertainty will persist over the next few months, until the vaccines become available in India for all adults."
The blue chip NSE Nifty 50 index added 0.12% to close at 14,956.20, while the benchmark S&P BSE Sensex gained 0.07% to close at 50,441.07.
Market sentiment also tracked global shares, which were mixed as initial optimism over the US Senate's passing of a $1.9 trillion stimulus bill gave way to inflation fears.
Drugmaker Dr. Reddy's Laboratories rose 5.3% after a report said India is expected to grant emergency use authorization for Russia's Sputnik V COVID-19 vaccine soon.
Shares of Bharti Airtel rose 5% and was the biggest boost to the Nifty 50 index after the company said on Tuesday it was initiating process to revise foreign investment limit up to 100%.
Shares of Gail (India) Ltd rose 5.8% to a 15-month high of 143.5 rupees after the state-owned gas distribution firm said it would consider a proposal to buy back shares.
"The earnings have already been surprising and we are bullish on IT, pharma and banking results. Anything to do with digital is doing good. The rally is so strong derailment of this run is the difficult part," Prabhakar said.