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Sensex pares gains to turn flat, Nifty slips in red in late afternoon trade

The S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to gain 0.5% and 0.8%, respectively

SI Reporter  |  New Delhi 

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The benchmark indices pared initial gains to turn flat in late morning deals after much softer-than-expected data fuelled hopes of an interest by the of India (RBI) at its next policy review in August.

At 2:53 pm, the S&P BSE was trading at 31,125, up 29 points, while the broader Nifty50 was ruling at 9,617, up 0.8 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.2% and 0.5%, respectively. 

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,452 shares rose and 851 shares fell. A total of 144 shares were unchanged.

Data released late on Monday showed consumer eased to 2.18% in May, helped by a drop in food prices. It was lowest since the country started publishing an economy-wide consumer price index in 2012. 

"CPI continues to be benign and seems set to dip below the RBI’s target band of 2-6% as early as June. A combination of favorable base effects as well as softness in price momentum is contributing to low prints in 1HFY18. Given the expected June and the softer policy tone in the RBI’s June policy, we expect a 25 bps cut in the next (August) MPC meeting," said brokerage Kotak Institutional Equities in a report. 

Stocks of rate-sensitive sectors such as realty, and banking were moving higher. 

index (up 0.8%) was the leading sectoral gainer, led by gains in Godrej Properties (4.5%), Delta Corp (1.8%) and Phoenix (1.2%). 

and indices were also up 0.5% and 0.3%, respectively.  

rose over 1% to Rs 551 after the company said one of its wholly-owned subsidiaries received US drug regulator's approval for generic Zetia tablets. The announcement was made before trading hours today, 13 June 2017.

DIC India was locked in its upper circuit of 20% at Rs 544 on the BSE after the specialty chemicals company said its board has approved the disposal of Mumbai land.