Stocks sink in negative zone in afternoon trade. At 13:27 IST, the barometer index, the S&P BSE Sensex, was down 50.58 points or 0.14% at 36,270.71. The Nifty 50 index was down 16.30 points or 0.15% at 10,874.

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.

The S&P BSE Mid-Cap index was off 0.56%. The S&P BSE Small-Cap index was off 0.29%.

The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 965 shares rose and 1404 shares fell. A total of 169 shares were unchanged.

HCL Technologies (up 1.58%), M&M (up 1.2%), Power Grid Corporation of India (up 0.94%), TCS (up 0.9%) and Hero MotoCorp (up 0.87%) edged higher from the Sensex pack.

Yes Bank (down 3.06%), SBI (down 2.21%), Sun Pharmaceutical Industries (down 1.59%), Bajaj Finance (down 1.55%) and ITC (down 1%) edged lower from the Sensex pack.

Overseas, Asian stocks were trading mixed as concerns about rising U.S.-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.

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.