The 30-share index opened higher at 17,632.23 points but later dipped to a low of 17,455.22 points on mild selling. Fag-end buying helped the barometer end in the green at 17,569.53, a gain of 6.92 points over last close.
Losers outnumbered gainers with 17 Sensex scrips closing with losses.
The broad-based National Stock Exchange index Nifty rose 5.15 points to 5,289.35, after moving between 5,304.25 and 5,252 points range.
The initial gains were reduced following a fall in realty, healthcare, auto, metal and FMCG stocks on fears the rising inflation might force banking regulator to further hike interest rate.
The gains were also capped on concerns that surging bond yields could stifle debt-ridden Italy's fund raising ability and throw the euro zone deeper into financial turmoil, while Greece struggled to pick a new leader.
Reliance Industries and Infosys -- the two most heavy on the Sensex - notched up fresh ground. RIL rose by 0.26 per cent to Rs 881.85 and Infosys by 0.36 per cent to Rs 2,839.15.
Major contributor to the barometer were State Bank of India, Tata Consultancy Services, Tata Motors, Hindustan Unilever, HDFC Bank, BHEL and Sterlite Industries.
In the sectoral indices, consumer durables, oil and gas, power, capital goods and banks remained firm