Indian shares were subdued on Thursday as investors gauged the impact of higher oil prices after crude surpassed $120 a barrel, while entertainment giant Zee ZEE.NS jumped after its top investor said it won't pursue a shareholder meeting.
By 0439 GMT, the blue-chip NSE Nifty 50 index .NSEI was flat at 17,246.30, while the benchmark S&P BSE Sensex .BSESN was up 0.01% at 57,689.69.
Volatile crude prices have kept domestic investors on edge, as they make the world's third-largest importer and consumer of oil susceptible to high inflation while pushing up its trade deficit and hurting the rupee.
Oil futures extended gains on Thursday as concerns over disruptions to supply lingered.
"The market now lacks direction and is moving up or down on a daily basis responding to news regarding crude price," said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Reuters also reported on Wednesday that India has frozen plans to allow local firms to list overseas, in a blow to foreign funds and stock exchanges. Read full story
Private equity firms with investments in new-age Indian technology startups and companies wanted such listings, said Ajit Mishra, vice president of research at Religare Broking, adding that future investments might be impacted.
Companies such as education platform BYJU'S and Walmart's WMT.N Flipkart have reportedly considered listing overseas.
In Mumbai, equities fell as much as about 0.9% in the first hour of trading. They later recouped some losses to trade flat, helped by gains in metal stocks.
Zee Entertainment Enterprises soared 16% after its top investor Invesco said it supports the company's merger with Sony's 6758.T India unit and will not pursue a shareholder meeting.
The Nifty Bank Index .NSEBANK lost 1.32% and was the biggest drag to equities. Private-sector lenders Kotak Mahindra Bank KTKM.NS, HDFC Bank HDBK.NS and ICICI Bank ICBK.NS were the top percentage losers on the Nifty 50.
