The Sensex resumed higher at 20,429.16 and hovered in a range of 20,516.60 and 20,149.01 before ending at 20,366.82, showing a mere loss of 9.74 points, or 0.05 per cent.
The BSE benchmark index has tumbled by 766.74 points, or 3.63 per cent, in the last three weeks.
The NSE's 50-share benchmark Nifty moved down by 14.85 points, or 0.24 per cent, to settle at 6,048.35.
Small and midcap stocks witnessed volatility as the interim Railway Budget did not contain any big-ticket measure even as passenger fares and freight rates were left untouched.
Small and midcap indices declined by 0.78 per cent and 0.39 per cent, respectively.
Globally, stocks ended higher following upbeat trade data from China. An optimistic economic outlook from Federal Reserve chief Janet Yellen also whetted investors' risk appetite.