Equity markets turn cautious ahead of RBI policy meet outcome (Lead)

Mumbai Feb 7 (IANS) Paring morning gains key Indian equity indices traded on flat note during the mid-afternoon session on Wednesday as investors turned cautious ahead of the sixth bi-monthly Monetary Policy outcome later during the day.

Around 12.30 p.m. the wider Nifty50 of the National Stock Exchange traded flat -- mere 5.50 points or 0.05 per cent higher at 10 503.75 points.

On the other hand the barometer 30-scrip Sensitive Index (Sensex) of the BSE which opened at 34 563.30 points traded at 34 193.20 points -- down 2.74 points or 0.01 per cent from its previous session s close.

The Sensex has so far touched a high of 34 666.33 points and a low of 34 059.59 points during intra-day trade.

The BSE market breadth was however bullish with 1 952 advances and 629 declines.

"Indian shares opened higher Wednesday on value buying by local fund amid positive global cues while bond yield holding much of their value relieved investors " Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.

"The RBI s MPC outcome is expected to reveal its hold interest rate study while focus will be on its commentary " he added.

On Tuesday the key indices witnessed their steepest intra-day fall -- with the Sensex shedding a staggering 1 200 points before recovering by over 700 points -- in almost two-and-a-half years following a global sell-off.

The Sensex closed at 34 195.94 points down 561.22 points or 1.61 per cent while the Nifty50 closed trade at 10 498.25 points -- down 168.30 points or 1.58 per cent.

--IANS
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