A benchmark index for Indian equities dropped 55 points from an intra-day high of 16,895.73 in noon trade after European bourses belled the day on a weak note.

The Sensex, which opened at 16,760.6, stood at 16,840.19, up 59.12 points from its previous close.

At the National Stock Exchange (NSE), the Nifty was ruling 0.36% up at 5,052.15.

The BSE midcap index surged 0.76% and the BSE smallcap index was up by 0.84%.

European stock markets opened in the red, but pulled back following comments from U. S. Federal Reserve Chairman Ben Bernanke that the US financial system would avoid another recession comfortably.

UK's FTSE 100 ruling flat at 5,069 points, while the German DAX was ruling 0.1 percent lower at 5,898.76 points.

The French CAC 40 was up 0.43 percent at 3,426.46 points.

In Asia, sentiments remained uncertain. The Japanese Nikkei ended flat at 9,537.94 points, up 0.18 percent, while the Kospi closed with gains, up 0.82 percent at 1,651.48 points.

Hong Kong's Hang Seng ened on a dull note, up 0.2 percent at 19,416.43 points, while the Shanghai composite index ended 0.11 percent higher at 2,514.46 points.