Mumbai, Nov 3 (IANS): Indian equity markets on Thursday traded flat on the back of global cues, such as the US Fed's Federal Open Market Committee (FOMC) interest rate decision and uncertainty regarding the upcoming US presidential elections.

Both the key indices traded marginally in the red during the mid-afternoon trade session, as heavy selling pressure was witnessed in oil and gas, healthcare, and IT stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched down by 1.30 points or 0.02 per cent to 8,512.70 points. 

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,518.06 points, traded at 27,518.34 points (at 2.40 p.m.) -- down 8.88 points or 0.03 per cent, from its previous close at 27,527.22 points.

The Sensex has so far touched a high of 27,600.74 points and a low of 27,438.57 points during the intra-day trade.

The BSE market breadth was skewed in favour of the bears -- with 1,454 declines and 1,395 advances.

On Wednesday, the benchmark indices had closed on a lower note, depressed by weak global cues.

The barometer index had declined by 349.39 points or 1.25 per cent, while the NSE Nifty lost 108.15 points or 1.25 per cent.

"The US Fed's signal for a interest rate-hike in December is a negative point for the markets in the short term. The US elections verdict in November is weighing on the market sentiment due to high level of uncertainty," Astha Jain, Senior Research Analyst, Hem Securities, told IANS.

"However, on the domestic front, positive Indian services sector data released earlier on Thursday has helped the markets to remained buoyed."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded with volatile sentiments due to short covering. 

"IT stocks traded down on selling pressure, while banking, auto and oil-gas stocks traded with firm sentiments on buying support," Desai said.

"Pharma, textile, aviation and media-entertainment stocks traded with mixed sentiments due to selling pressure."