Volatility ruled the roost in mid-afternoon trade as the key indices reversed losses soon after hitting intraday low. At 14:29 IST, the barometer index, the S&P BSE Sensex, was up 50.18 points or 0.14% at 36,371.47. The Nifty 50 index was up 14.10 points or 0.13% at 10,904.40.

Local stocks nudged higher in early trade on positive Asian stocks. Key indices hovered in positive zone in morning trade. Stocks traded in a small range in mid-morning trade. Volatility struck bourses in early afternoon trade as the key benchmark indices erased intraday gains and were trading a tad above the flat line. Stocks fell in negative zone in afternoon trade.

The S&P BSE Mid-Cap index was off 0.24%. The S&P BSE Small-Cap index was off 0.2%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1006 shares rose and 1479 shares fell. A total of 152 shares were unchanged.

Axis Bank (up 2.06%), HCL Technologies (up 1.65%), M&M (up 1.44%), HDFC (up 1.1%) and Hero MotoCorp (up 1.01%) edged higher from the Sensex pack.

Hindustan Unilever fell 0.68% ahead of its Q3 result today, 17 January 2018.

Reliance Industries rose 0.22% ahead of its Q3 result today, 17 January 2018.

Overseas, European stocks are trading lower as worries about trade relations between China and the US also kept the mood cautious. In Europe, UK Prime Minister Theresa May's government survived a vote of no-confidence in parliament, a day after her proposed Brexit plan was overwhelmingly rejected by lawmakers. The defeat, 432 against compared with 202 in favor, was the largest margin of defeat by a sitting British government since the 1920s, and throws into doubt the country's plans to exit from the EU without disrupting global markets.

Asian stocks were trading mixed as concerns about rising US-China tensions offset signs of a better-than-expected start to the earnings season. A report that the US was investigating China's Huawei for allegedly stealing trade secrets from American companies also weighed on sentiment.

In US, Wall Street's major indexes hit one-month highs on Wednesday as strong earnings from Bank of America Corp and Goldman Sachs Group Inc boosted investor sentiment. The Dow Jones Industrial Average rose 141.57 points, or 0.59%, to 24,207.16, the S&P 500 gained 5.8 points, or 0.22%, to 2,616.1 and the Nasdaq Composite added 10.86 points, or 0.15%, to 7,034.69.

Investors are watching the implications of a protracted, partial government shutdown, which has now stretched to a record 26th day. While markets have largely shrugged off the drama unfolding in Washington, economists warn that the longer the impasse lasts, the greater the effect on the economy will be.