At 12:25 pm, the Sensex traded 2.98 points - or 0.01 per cent - higher at 38,826.09, while the Nifty was down 1.40 point at 11,584.30.

Top percentage gainers on the 50-scrip index were Sun Pharma, Tata Steel, NTPC, UPL and Vedanta, trading between 1.89 per cent and 2.59 per cent higher.

On the other hand, Wipro, Larsen & Toubro, Axis Bank, Bharti Airtel and Bajaj Finance - trading between 1.44 per cent and 2.17 per cent lower - were the top laggards.

Market breadth favoured mild gains, with 1,106 stocks on the BSE trading higher and 1,030 struggling with losses. On the NSE, 912 stocks advanced while 730 declined.

The Sensex was flat as gains in Reliance Industries, HDFC and NTPC were countered by losses in L&T, HDFC Bank and Axis Bank.

Infosys shares rose 0.85 per cent to touch an intraday high of Rs 726.95 apiece on the BSE, ahead of the earnings announcement by the IT major later in the day.

The government is due to release data on consumer inflation (Consumer Price Index) and industrial production (Index of Industrial Production) at 5:30 pm.

Private sector lender IndusInd Bank will also be reporting its earnings for the quarter ended June 30 later in the day.

Equities in other Asian markets pulled back on Friday amid renewed concerns over the US-China trade war, a day after US President Donald Trump said China was not living up to promises it made on buying agricultural products from American farmers.