The benchmark index rebounded from early lows as buying emerged in some index heavyweights. At its day’s low, the Sensex had slid over 200 points on the back of weak global cues. 

The Sensex was trading flat at 16,367, up 13 points, recovering from its day’s low of 16,144. Another benchmark index Nifty was trading at 4,858. It had slipped below 4,800 in the early trade.

In the broader markets, the breadth continued to negative, with 976 stocks gaining on the BSE and 1,432 declining.

Some buying was seen in oil & gas, capital goods and auto stocks after he selloff yesterday. Among the Sensex stocks, index heavyweights RIL and L&T were up over 2 per cent. Auto stocks Tata Motors and M&M were trading 2-3 per cent higher. Bharti Airtel, which fell over 7 per cent yesterday, was up over 4 per cent to be among the biggest gainer among the Sensex stock.

Asian stocks were lower for a second day on Wednesday amid worries US consumers were continuing to struggle, undermining hopes for a quicker turnaround in an economy that's a major export market for the region.

Major markets fell by about 1.5 per cent or more across Asia, while oil prices and the dollar weakened modestly.

The losses followed another lackluster session on Wall Street, where an unexpected drop in a key measure of confidence among American consumers gave investors few reasons to wade deeper into a market that's run massively higher since March.