Sensex pares losses to turn flat on buying in auto, realty stocks

In a volatile trading session, the benchmark indices pared most of its losses to turn flat in the afternoon trade on renewed buying in auto and realty stocks after many banks announced reduction in lending rates. 

At 02:25 pm, the S&P BSE Sensex was trading at 26,622, down 4 points, while the broader Nifty50 was ruling at 8,183, down 2 points. 

Broader market, however, outperformed the headline indices. BSE Smallcap index rose 1%, while BSE Midcap added 0.5%. 

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,781 shares rose and 799 shares fell. A