Indian shares close flat, market subdued by terrorist attack

Other major losers were NTPC (down 2.86 percent), Tata Steel (down 2.55 percent), Tata Motors (down 2.43 percent) and Ranbaxy Laboratories (down 2.06 percent).

The BSE Midcap index closed up 0.29 percent at 2885.76 while the Smallcap index closed down 0.31 percent at 3304.61.

Despite the gain in the Sensex, the overall market mood was subdued as 1114 shares declined, 915 shares advanced and 64 shares closed unchanged.

Elsewhere, the broader 50-share S&P CNX Nifty index of the National Stock Exchange (NSE) closed 0.10 percent or 2.85 percent up at 2755.10.

According to market analysts, the flat-to-positive close could be attributed to lower inflation rate, which raised hopes of cut in key interest rates. India's wholesale price index (WPI)-based inflation rate fell to 8.84 percent in the 12 months to November 15, from previous week's figure of 8.90 percent, government data showed on Thursday, indicating that inflation is stabilizing.

Moreover, news that India's economy grew at a better-than-expected 7.6 percent in the September quarter from a year earlier also helped lift market confidence despite the ongoing terrorist attacks in Mumbai weighing on investors' sentiments.