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Sensex, Nifty End Flat As RBI Cuts Repo Rate

Indian shares gave up early gains to end on a flat note on Thursday after the Reserve Bank of India ( RBI) unexpectedly cut the repo rate by 0.25 percent to 6.25 percent, saying inflation will likely stay within its target range.

The central bank also changed its monetary policy stance to 'neutral' from the earlier 'calibrated tightening', signaling a further softening of rates if inflation remains benign.

Economists had expected the rate to remain unchanged in the February policy session, which was the first chaired by the new RBI Governor Shaktikanta Das.

The benchmark 30-share BSE Sensex ended down 4.14 points at 36,971.09 while the broader Nifty index finished up by 6.95 points at 11,069.40.

Grasim, Bajaj Auto, Eicher Motors, Sun Pharma and Zee Entertainment Enterprises climbed 3-5 percent in the Nifty pack, while HDFC, Power Grid, Larsen & Toubro, Reliance Industries and JSW Steel dropped 1-2 percent.

Globally, other Asian markets ended mixed as investors shrugged off U.S. President Donald Trump's State of the Union address and looked ahead for progress in the U.S.-China trade dispute, ahead of crucial talks in Beijing next week.

European stocks were flat to slightly lower in early trade.

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