Sensex erases losses to trade flat on value buying

MUMBAI (Reuters) - The BSE Sensex and Nifty bounced back from a nearly four-month low hit earlier on Tuesday, erasing losses of more than 1 percent, as some blue chips such as ITC Ltd recovered on value buying after the indexes had fallen in six out of seven previous sessions.

ITC gained 1.5 percent after earlier falling as much as 1.4 percent, while Tata Motors Ltd gained 2 percent.

The benchmark BSE Sensex was trading flat after earlier falling as much as 1.2 percent. The broader Nifty was also flat. Both indexes had earlier hit their lowest since October 9.

The late recovery allowed the two indexes to bounce back above their 200-day moving averages.

(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)