Consequently, the key indices of the Indian equity markets traded flat during the mid-afternoon session.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) inched up 12 points or 0.15 percent, at 7,974.50 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 25,956.42 points, traded at 26,039.89 points (at 2.00 p.m.) — down 32.59 points or 0.13 percent from the previous close at 26,007.30 points.
The Sensex has so far touched a high of 26,092.93 points and a low of 25,885.24 points during the intra-day trade.
The BSE market breadth was tilted in favour of bulls — with 1,237 advances and 1,198 declines.
Both the key Indian indices had ended on a higher note during the previous trade session on Tuesday. The barometer index had gained 328 points or 1.28percent.
Similarly, the NSE Nifty had risen by 108 points or 1.37 percent.
Initially on Wednesday, the key indices opened on a negative note in-sync with their Asian peers.
Investors were seen cautious ahead of the US FOMC (US federal open market committee) meet and the Bank of Japan’s (BoJ) monetary policy review.
The US FOMC meet assumes significance as it will decide the future course of the US interest rates. A hike in interest rates is expected to lead away Foreign Portfolio Investors (FPIs) from emerging markets such as India.
Besides, unwinding of long positions ahead of the futures and options (F&O) expiry dented sentiments.
Even the ongoing logjam in parliament dampened sentiments. Investors are worried that the logjam might postpone key economic legislation from getting passed.
However, the equity markets pared its initial losses, as value buying at lower levels and healthy fourth quarter (Q4) results lifted prices.
In addition, rising crude oil prices supported the equity market’s upward movement.
“Follow through buying from yesterday and healthy quarterly results lifted prices. Rising oil prices also supported the uptrend,” Anand James, chief market strategist, Geojit BNP Paribas Financial Services, told IANS.
“However, investors were cautious ahead of several event risks like the FOMC meet,BoJ’s monetary policy review and F&O exipry. Parliament’s logjam also dampened sentiments”.