The BSE Sensex is trading 0.01 percent higher while the broader Nifty is up 0.02 percent.
Investors cautious and reluctant to take big bets on concerns over violence in Iraq, which sent crude prices to higher levels.
Brent crude held near $115 a barrel on Friday, close to a nine-month high and headed for its second weekly gain on increased risks of supply disruptions from Iraq.
Stocks of oil companies such as Oil & Natural Gas Corp (ONGC) up on value-buying. ONGC fell more than 5 percent in the previous session.
Overseas investors, who have been the backbone of a 21 percent rise in the broader Nifty so far this year, turned net sellers on Thursday. FIIs sold Indian shares worth 4.21 billion rupees on Thursday, provisional exchange data showed.
BSE Sensex up 45 points in early trade
The benchmark BSE Sensex today rose over 45 points in early trade after two sessions of losses on emergence of buying by funds in oil and gas, consumer durables, realty and healthcare sector stocks amidst a firming Asian cues.
The 30-share barometer rose by 45.08 points, or 0.18 per cent, to 25,246.8 points. The index had lost 319.39 points in the previous two sessions.
Similarly, the wide-based National Stock Exchange index Nifty moved up by 4.15 points, or 0.06 per cent, to 7,544.85.
Brokers said apart from fresh buying by funds in select stocks, a firming trend on the other Asian bourses following another record close on US market, helped trading sentiment to improve.
In the Asian region, Japan's Nikkei was up by 0.32 per cent, while Hong Kong's Hang Seng index rose 0.14 per cent in early trade today.
The US Dow Jones Industrial Average rose 0.09 per cent to close at new high in yesterday's trade.