Indian shares were largely unchanged on Wednesday, tracking global markets as investors turned cautious after an influential U.S. Federal Reserve official said interest rates could rise as soon as September.
Asian shares stepped back from a one-year high after the comments from New York Federal Reserve Bank President William Dudley on Tuesday. The MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.05 percent.
A recent rally in Indian shares has paused as investors see a lack of new triggers. The NSE index is down 0.4 percent since hitting a 15-1/2 month high on Aug. 9.
"Global cues are mixed to negative. With that in the backdrop and absence of major domestic cues, markets have remained volatile," said Anand James, chief market strategist, Geojit BNP Paribas Financial Services.
"Markets have not decided a direction as yet but it is not a thematic move; more of value-based buying that is supporting prices on the low side."
The broader Nifty was up 0.03 percent at 8,645.45 as of 11:56 a.m. The index fell as much as 0.19 percent earlier.
The benchmark BSE Sensex was 0.12 percent higher at 28,098.03.
IT exporters continued to drag the indices down, while the banking and auto sectors edged up.
Infosys Ltd fell as much as 1.60 percent after closing one percent down on Tuesday after Royal Bank of Scotland cancelled its contract with the IT company to provide services to a U.K. unit.
Tata Consultancy Services was down 1.54 percent after falling 1.7 percent on Tuesday.
Shares of InterGlobe Aviation, owner of budget carrier IndiGo, gained as much as 3.82 percent after Citi upgraded the stock to "buy" from "neutral", adding that A320 delivery concerns were unwarranted.
Piramal Enterprises rose 4.68 percent to a record high after it said on Tuesday its U.S. unit would buy contract drug maker Ash Stevens Inc.
Indian debt and currency markets were closed on Wednesday on account of a local holiday.
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