The Sensex closed 66.44 points, or 0.17 per cent higher than its previous close, at 39,749.73, after moving in the narrow range of 39,828.65 and 39,498.65. The Nifty too ended near-flat, up by just 4 points, or 0.03 per cent, at 11,928.75.
"Now that euphoria over the general election results is over, the market is waiting for signals of directional move," said Romesh Tiwari, Head of Research, CapitalAim.
Supported by foreign fund inflows, the Indian rupee also closed slightly higher at Rs 69.69 to a US dollar.
"Today, there were no major triggers on the global as well domestic fronts and hence, we had a flat to positive start tad above the 11,950 mark," said Angel Broking Chief Analyst (Technical and Derivatives) Sameet Chavan.
Dewan Housing Finance Corporation Ltd stocks on Tuesday fell nearly 7 per cent on reports that its promoter-directors have received a look out notice in connection financial fraud.
The company, however, denied it, saying that "its promoter-directors have not received any communication from the authorities regarding issuance of any look-out notice."
Manpasand Beverages hit the lower circuit breaker again on Tuesday for the second consecutive day, plunging by 20 pet cent, or Rs 17.60, to Rs 70.40 over their MD and CFO's arrests on charges of GST fraud.
The trading in a particular stock and even an index is halted by the exchanges when it hits a lower or upper circuit breaker.
Zee Media surged by 6.36 per cent closing at the top of the Nifty50 stocks.
( With inputs from IANS )