Despite rebounding over 386 points during the day, the 30-share index pared most gains to settle 62.45 points or 0.18 per cent higher at 35,697.40.
On similar lines, the broader NSE Nifty closed 6.95 points or 0.07 per cent up at 10,458.40.
Top gainers in the Sensex pack included Hero MotoCorp, Reliance Industries, ICICI Bank and L&T, while Tata Steel, IndusInd Bank, ONGC, SBI and Infosys ended significantly lower.
According to analysts, equity benchmarks gave up most gains as nervousness heightened among investors amid rapidly increasing coronavirus cases in the country and mixed cues from global markets.
The number of confirmed cases of coronavirus in India has risen to 60.
The coronavirus epidemic has wreaked havoc across the world, killing more than 4,000 people and leaving close to 120,000 infected.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with significant losses, while those in Europe rallied up to 2 per cent in early trade.
Brent crude oil futures slipped 2.02 per cent to USD 36.47 per barrel, after Saudi Arabia hiked production by one million barrels a day.
On the currency front, the Indian rupee appreciated 46 paise to 73.70 per US dollar (intra-day). ANS ABMABM