Mumbai (Maharashtra) [India], June 4 (ANI): Indian equity markets ended largely flat on Thursday as investors remained cautious ahead of the Reserve Bank of India's Monetary Policy Committee (MPC) decision scheduled for Friday.

Market sentiment, however, received support from reports that the government is considering tax benefits for foreign portfolio investments in government securities.

The NSE Nifty 50 index closed at 23,416.55, up 10.95 points or 0.05 per cent, while the BSE Sensex settled at 74,360.01, gaining 13.84 points or 0.02 per cent.

According to market experts, equities traded in positive territory during the session after witnessing volatility in recent trading days.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said sentiment improved following reports that the government plans to provide tax benefits to foreign portfolio investors investing in government securities.

The proposed move is aimed at attracting foreign capital inflows and supporting the rupee.

Khemka noted that easing global concerns and a moderation in crude oil prices also helped improve investor confidence during the session.

'Indian equities are likely to remain range-bound in the near term amid a mix of domestic and global developments,' he said.

According to him, investors will closely monitor the outcome of the RBI's Monetary Policy Committee meeting at 10 a.m. on Friday for signals on interest rates, inflation, economic growth and currency stability.

At the same time, persistent foreign institutional investor (FII) selling remains a key concern for the market, he said.

Among sectoral indices on the NSE, a largely positive trend was visible. Nifty IT and Nifty Metal were the only major sectoral indices to close in the red. Nifty IT declined 0.29 per cent, while Nifty Metal fell 0.73 per cent.

Among gainers, Nifty Media surged 2.19 per cent, emerging as the top-performing sector of the day. Nifty PSU Bank gained 0.41 per cent, Nifty Pharma rose 0.38 per cent, Nifty Realty advanced 0.26 per cent, Nifty Auto added 0.20 per cent, Nifty FMCG gained 0.19 per cent and Nifty Private Bank moved up 0.17 per cent.

Meanwhile, Brent crude oil prices eased 1.38 per cent to USD 96.48 per barrel, providing some relief to investors concerned about inflationary pressures.

Asian markets, however, witnessed broad-based selling pressure. Japan's Nikkei 225 index declined 1.44 per cent to close at 67,429. Singapore's Straits Times fell 1.40 per cent to 5,067, while Hong Kong's Hang Seng index dropped 1.52 per cent to close at 25,250. Taiwan's Weighted Index slipped 1.71 per cent to 45,677, and South Korea's KOSPI index declined 1.88 per cent to close at 8,639. (ANI)