Sensex flat in afternoon trade

A benchmark index for the Indian equities markets Thursday was ruling flat in afternoon trade as traders took a breather after the rally in the previous session and awaited the monetary policy update scheduled Friday.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,837.76 points, was ruling at 16,738.49 points, up 37.17 points or 0.22 percent from its previous close at 16,709.6 points.

It rose to a high of 16,843.98 points in early trade but later slipped to touch a low of 16,545.47 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange too was trading higher at 5,037.15 points, up 0.49 percent.

The Reserve Bank of India will take a call on raising interest rates when it meets Friday to review the monetary policy.

Broader markets were largely subdued with the BSE 100 index up 0.4 percent. Realty, IT, consumer durables and telecom stocks were on the rise, while capital goods declined.

The market breadth was positive with 1,382 stocks advancing, compared to 1,168 on the decline and 93 remaining unchanged.

Sensex gainers at this time included DLF, Tata Motors, TCS and SBI, while the losers included Maruti Suzuki, L&T, Tata Steel and ONGC.

In Asia, Japan's Nikkei closed 1.76 percent up at 8,668.86 points, while Hong Kong's Hang Seng index was trading flat at 19,068.54 points.

Chinese markets edged lower with the Shanghai Composite index closing 0.23 percent lower at 2,479.05 points.

European bourses rose amid optimism that the Germany and France would unveil new steps to help curb the debt crisis faced by countries in the Euro zone.