Mumbai, Aug 2 (IANS): Indian equity markets traded on a flat note with marginal losses during the mid-afternoon session on Wednesday, as caution ahead of announcement of the monetary policy review by the Reserve Bank of India (RBI), coupled with selling pressure witnessed in metal, capital goods and FMCG stocks, kept investors' sentiments subdued.
In the early morning session, the key equity indices opened on a higher note and surged to new intra-day highs on hopes of a rate cut by RBI in its monetary policy review to be announced later in the evening.
The NSE Nifty50 scaled a fresh intra-day high of 10,137.85 points and the BSE Sensex of 32,686.48 points.
At 12.50 p.m., the wider Nifty50 of the National Stock Exchange (NSE) traded below the psychologically important 10,100-mark. It closed above that level for the first time on Tuesday.
The NSE Nifty fell by 18.95 points, or 0.19 per cent, to trade at 10,095.70 points.
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,641.58 points, traded at 32,537.71 points -- down 37.46 points, or 0.11 per cent, from its previous close at 32,575.17 points.
The BSE market breadth was bearish with 1,289 declines and 1,128 advances.
"Indian stocks turned flat after hitting fresh high in early trade today. The RBI would be announcing it monetary policy decision later in the day. Most economists expect the RBI to lower its repo rate by 25 basis points while some even say that the central bank could even go for a 50-basis-point rate cut," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
"Banking stocks, which have outperformed in the recent rally, edged higher on hopes of a rate cut. Other rate sensitive sectors such as realty and auto also saw some buying. However, some selling pressure was seen in metal and oil and gas stocks," he added.
On Tuesday, the key Indian equity indices closed at fresh highs on the back of healthy quarterly results from corporates as well as July automobile results.
The NSE Nifty50 closed above the psychologically important 10,100-mark for the first time -- at 10,114.65 points -- after touching a fresh intra-day high of 10,128.60 points.
The Sensex of the BSE closed at a fresh high of 32,575.17 points.