Key equity indices ended almost flat after a volatile trading session. Losses in Hindustan Unilever, ITC and HDFC offset gains in Infosys, ICICI Bank and IndusInd Bank.

The Sensex rose 2.96 points or 0.01% to settle at 36,321.29. The index rose 143.70 points, or 0.40% at the day's high of 36,462.03. The index fell 39.72 points, or 0.11% at the day's low of 36,278.61.

The Nifty 50 index rose 3.50 points or 0.03% to settle at 10,890.30. The index rose 41.35 points, or 0.38% at the day's high of 10,928.15. The index fell 9.90 points, or 0.09% at the day's low of 10,876.90.

The S&P BSE Mid-Cap index fell 0.02%. The S&P BSE Small-Cap index rose 0.14%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1225 shares rose and 1354 shares fell. A total of 146 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (up 0.66%), the S&P BSE IT index (up 0.65%) and the S&P BSE Healthcare index (up 0.44%), outperformed the Sensex. The S&P BSE Telecom index (down 0.82%), the S&P BSE FMCG index (down 0.74%) and the S&P BSE Metal index (down 0.68%), underperformed the Sensex.

Reliance Industries rose 0.40% to Rs 1134.05. The company's board will consider Q3 results on Thursday, 17 January 2019.

Hindustan Unilever (down 0.99%), ITC (down 0.88%) and HDFC (down 0.79%), were the major Sensex losers.

Infosys (up 1.38%), ICICI Bank (up 0.68%) and IndusInd Bank (up 2.02%), were the major Sensex gainers.

Mahindra & Mahindra (M&M) fell 0.14%. Automobili Pininfarina GmbH ('APF'), a wholly owned subsidiary of Mahindra Automotive Mauritius ('MAML') which in turn is a wholly owned subsidiary of M&M, has acquired 100% of the membership interests in Harkey Acquisition, L.L.C., USA on 15 January 2019. Going forward Harkey would be re-christened as Automobili Pininfarina Americas Inc., subject to necessary approvals. Pursuant to this, Harkey has become a wholly owned subsidiary of APF and in turn of MAML and of the company with effect from 15 January 2019. The announcement was made during market hours today, 16 January 2019.

Zee Entertainment Enterprises fell 1.01% to Rs 452.10. The stock displayed high volatility. It hit a high of Rs 475.90 and a low of Rs 448.60 in intraday. On a consolidated basis, Zee Entertainment Enterprises' net profit rose 50.56% to Rs 562.76 crore on 17.88% increase in net sales to Rs 2,166.77 crore in Q3 December 2018 over Q3 December 2018. Revenue growth was driven by the strong performance of broadcast business. EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter grew by 26.9% to Rs 754.30 crore and EBITDA margin stood at 34.8%. The result was announced after market hours yesterday, 15 January 2019.

Dr Reddy's Laboratories rose 1.15%. Dr Reddy's Laboratories informed that the US Food and Drug Administration (USFDA) completed audit of the company's formulations Srikakulam plant (SEZ) Unit I, Andhra Pradesh on 15 January 2019. The company has been issued a Form 483 with 4 observations, which the firm is addressing. The announcement was made after market hours yesterday, 15 January 2019.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.14, compared with its close of 71.05 during the previous trading session.

In the global commodities markets, Brent for March 2019 settlement was up 3 cents at $60.67 a barrel. The contract rose $1.65 a barrel or 2.80% to settle at $60.64 a barrel during the previous trading session.

On the macro front, trade deficit narrowed in December 2018, government data released after market hours yesterday, 15 January 2019 showed. India's merchandise exports rose 0.3% to US$ 27.93 billion in December 2018 over a year ago. Meanwhile, merchandise imports declined 2.4% to US$ 41.01 billion, leading to 7.9% dip in the trade deficit to 10-month low of US$ 13.08 billion in December 2018 from US$ 14.20 billion in December 2017.

Merchandise exports in rupees increased 10.5% to Rs 197536 crore, while imports moved up 7.4% to Rs 290033 crore in December 2018 over December 2017. The trade deficit declined to Rs 92497 crore in December 2018 compared with Rs 95594 crore in December 2017.

Overseas, European stocks were mixed Wednesday, with market participants assessing their options after British lawmakers voted against Prime Minister Theresa May's Brexit deal by a crushing margin.

Market focus is now largely attuned to political uncertainty in the UK, with investors turning their attention to a confidence vote on May's government on Wednesday evening. Prime Minister Theresa May's plan to leave the European Union by a March 29 deadline was rejected overwhelmingly by the parliament, triggering more uncertainty as the country struggles to engineer an orderly exit from the trade bloc. In a crushing defeat, 432 members voted against May's proposal while 202 voted in favor.

Most Asian stock markets ended higher supported by positive sentiment to China signaling more stimulus measures to come, including larger tax cuts, amid concerns of a slowdown in the world's second-largest economy.

US stocks snapped a two-session skid Tuesday, as a robust tech rally offset lackluster results from major US banks, including Dow-component JPMorgan Chase & Co.