Equity benchmarks Sensex and Nifty gave up early gains and were quoting flat during mid-session deals amid the Reserve Bank of India maintaining status quo on the benchmark lending rate.

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After surging 262 points in opening trade, the Sensex paired most of its gains to trade flat at 58,965.18, lower by 69.77 points at 11:43 hours. During the trade so far, the benchmark hit a high of 59,297.46 and a low of 58,876.36.

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The Nifty was also trading marginally higher by 5.20 points to 17,644.75.

MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.

Consequently, the reverse repo rate will continue to earn 3.35 per cent interest for banks for their deposits kept with RBI.

The Monetary Policy Committee (MPC) also decided unanimously to remain accommodative, while focussing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

This is the 11th time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.

"Retaining the repo rate at 4 per cent & reverse repo to 3.35 per cent, continuing with the accommodative stance on expected lines," according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

From the 30-share pack, Dr Reddy's, Titan, Tata Steel, and Wipro were among the gainers.

In contrast, HDFC, Tech Mahindra, HDFC Bank and TCS were among the laggards.

In Asia, markets in Seoul, Shanghai, and Tokyo were trading higher in mid-session deals, while Hong Kong traded lower.

Stocks in the US ended higher in the overnight session.

International oil benchmark Brent crude gained 0.1 per cent to USD 100.68 per barrel.