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

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

At 2:53 pm, the S&P BSE Sensex 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