The BSE Sensex and NSE Nifty edged lower on Friday, erasing earlier gains of more than 1 per cent, as blue chip shares such as Reliance Industries fell after Prime Minister Manmohan Singh said that April-June GDP growth would be flat.
A poll of 36 economists expected India's gross domestic product to have expanded 4.7 per cent year-on-year in the quarter to June, near decade lows on an annual basis and a tad under the 4.8 per cent growth in the previous three months.
The broader NSE index fell 0.3 per cent after earlier gaining as much as 1.1 per cent, while India's benchmark index is down 0.2 per cent after earlier gaining as much as 1.3 per cent.
Earlier, the S&P BSE Sensex recovered from initial losses by surging 196 points on fresh buying mainly in realty, IT, tech, healthcare and consumer durable sectors on the back of higher global cues.
The BSE-30 share index opened higher at 18,424.72, but fell to a low of 18,283.74 on selling in select counters in view of foreign capital outflows yesterday.
However, it recovered immediately to 18,598.80 before quoting 18,596.65 points at 1045 hours.
It showed a net rise of 195.61 points or 1.06 per cent from its last close.
The NSE 50-share barometer Nifty also moved up by 46.50 points, or 0.86 per cent, to 5,455.55 at 1045 hours.
However, Sesa Goa fell by 2.18 per cent followed by Tata Power (1.88 pc), NTPC (1.88 pc), Coal India (1.58 pc) and Maruti Suzuki (1.41 pc).
Most Asian stocks rose in their early trade following overnight gains in US stocks triggered by data showing that the US economy expanded more rapidly than previously thought in the second quarter.
Key benchmark indices in South Korea, Indonesia, Taiwan and China rose by 0.25 to 1.05 per cent while indices in Singapore, Hong Kong, and Japan fell by 0.06 to 0.48 per cent.
Foreign institutional investors (FIIs) sold shares