Sensex flat; investors cautious ahead of key data

REUTERS - Indian shares were flat on Monday as investors paused a day before the Reserve Bank of India's decision on policy rates and with a number of global risk events scheduled for later this month, including a U.S. Federal Reserve meeting and the "Brexit" referendum.

The RBI is widely expected to keep its benchmark repo interest rate unchanged at a five-year low of 6.50 percent, a Reuters poll showed last week. Most analysts, however, expected a 25 bps cut later this year, depending on the progress of monsoon rains.

June is expected to be a volatile month, with the Fed due to conclude its two-day meeting on June 16, although expectations of a rate hike next week have receded after a much weaker-than-expected U.S. jobs report.

That could pause gains in markets after indexes on Friday hit their strongest levels since late October on hopes about a recovery in the Indian economy.

"As the Nifty has risen significantly in the last few sessions, investors now keenly wait for signals from market-moving events such as the RBI policy meet, the U.S. Fed decision, India's monsoon data and most importantly, the Brexit referendum later this month," said Rajesh Agarwal, head of research at AUM Capital Market.

The broader NSE Nifty was down 0.3 percent at 8193.8 as of 0900 GMT, while the benchmark BSE Sensex was down 0.06 percent at 26,825.62.

Among stocks that were trading lower, Tech Mahindra Ltd was down 1.9 percent and Axis Bank Ltd and Bharat Petroleum Corp Ltd were down 1.5 percent each, after gaining for at least two previous sessions.

Shares of state-owned lenders rose ahead of a quarterly performance review meeting with the finance minister on Monday.

Shares of Punjab National Bank were trading higher at 1.4 percent, State Bank of India at 1.8 percent, and Bank of Baroda < BOB.NS> at 2.5 percent.

Nagarjuna Oil Refinery Ltd rose as much as 19.05 percent after oil minister Dharmendra Pradhan said the country would help revive the Nagarjuna refinery.

(Reporting by Samantha Kareen Nair; Editing by Anupama Dwivedi)