New Delhi, Feb 27 (IANS): Major market indices Sensex and Nifty traded on a flat note on Wednesday's late afternoon session after it fell over 600 points during a highly volatile day when tension between India nad Pakistan appeared to have further escalated.

Investors sentiments dampened over reports that Pakistani jets had violated Indian airspace causing a steep fall on the BSE Sensex between 11 a.m. and 12.30 p.m.

The sensitive index fell over 600 points from its intra-day high to a low of 35,735.33.

However, market pared its major losses around 2 p.m., and the S&P BSE Sensex traded 16.66 points or 0.05 per cent down at 35,957.05, from its previous close of 35,973.71.

While the broader Nifty50 traded 12.05 points or 0.11 per cent lower at 10,823.25.

Barring the Nifty PSU Bank index and pharma index all the sectoral stocks traded in the red.

A day after Reserve Bank of India (RBI) took off Allahabad Bank, Corporation Bank and Dhanlaxmi Bank from the Prompt Corrective Action (PCA) framework, the stocks of PSU banks surged.

Among the Sensex stocks which fell in the 1-2 per cent range were Tata Motors (DVR), Tata Motors, Vedanta, Hindustan Uniliver, Kotak Mahindra Bank.

While the index toppers were Bajaj Auto, Sun Pharma, Larsen and Toubro, Axis Bank and TCS.