A sense of caution prevails among investors who are awaiting some measures from the government to arrest demand slowdown.
After swinging 470 points during the day, the 30-share Sensex settled 38.80 points, or 0.10 per cent, higher at 37,350.33.
The 30-share index pared some opening losses to trade 248.25 points or 0.67 per cent lower at 37,063.28 at 0930 hours.
After surging 515 points during the session, the 30-share Sensex settled 353.37 points or 0.96 pc higher at 37,311.53.
Easing inflation numbers, released after market hours on Tuesday, too helped the recovery in domestic market sentiment, traders said.
At close of trade, the market capitalisation of BSE-listed companies tumbled Rs 2,21,837.81 crore to Rs 1,39,46,997.40 crore.
RBI reduced the benchmark lending rate by 35 basis points to 5.40 per cent amid concerns over slowdown in economy.
Nifty too recovered from its five-month low to settle around 86 points higher ahead of the RBI's policy outcome.
The company's scrip tumbled 10.08 per cent to close at Rs 41.95 on the BSE.
After cracking over 700 points in day trade, Sensex pared losses to close at 36,699.84, still down by 418.38 points.