The S&P BSE Sensex and NSE Nifty 50 Indexes continue to trade on a flat note despite the Reserve Bank of India cutting the repo rate for fourth time in a row by 35 basis points to 5.4 per cent, lowest in over nine years to spur the slowing economic growth. The upside movement in the benchmarks was capped as gains in ICICI Bank, Hindustan Unilever, Infosys and IndusInd Bank were offset by losses in ITC, Larsen & Toubro and Mahindra & Mahindra.

As of 12:27 pm, Sensex traded 0.15 per cent or 55 points higher at 37,032 and the NSE Nifty 50 Index advanced 0.06 per cent or 7 points to 10,955.

The market sentiment failed to pick up after the rate cut as the central bank cut the real GDP growth target to 6.9 per cent from 7 per cent for the current financial year, analysts said.

Reserve Bank of India has projected inflation target of 3.1 per cent for second quarter of 2019-20 and 3.5-3.7 per cent for second half of the current financial year, below its medium term consumer inflation target of 4 per cent.

Nine of 11 sector gauges compiled by National Stock Exchange were trading higher led by the Nifty Media Index's 3.3 per cent gain. IT and pharma sector gauges also rose 1.12 per cent and 0.98 per cent each.

On the flipside, Nifty Auto Index was top loser down 0.5 per cent.

Mid- and small-cap shares were outperforming larger peers as the Nifty Midcap 100 Index rose 0.6 per cent and Nifty Smallcap 100 Index advanced 0.8 per cent.

Zee Entertainment was top loser in the Nifty basket of shares, up 7.14 per cent to Rs 335. Yes Bank, Cipla, IndusInd Bank, Hindustan Unilever, Hero MotoCorp and HCL Technologies were also among the gainers.

On the flipside, Indiabulls Housing Finance dropped 8.7 per cent to Rs 469 after its net profit fell 24 per cent to Rs 802 crore. Tata Steel, Bharat Petroleum, Mahindra & Mahindra, Titan, GAIL India, JSW Steel and Eicher Motors were among the losers.