Sensex at day's high; PSU Bank index down 1%

Benchmark indices are trading firm in the afternoon trade with the Nifty hovered above the 11,550 level, up 64 points.  The S&P BSE Sensex was also up 198 points at 39,243 ahead of the outcome of a two-day meeting of the US FOMC.

The S&P BSE Mid-Cap index gained 0.12% while the S&P BSE Small-Cap index rose 0.05%.

The market breadth was almost even on the BSE, 1314 shares rose and 1290 shares fell. A total of 195 shares were unchanged.

The Nifty PSU Bank slipped 1% at 1,420.50 levels with major selling pressure seen in J&K Bank, UCO Bank and Bank of India. J&K Bank slipped 2.5%, UCO Bank and Bank of India dropped 2%, SBI fell by 1.5%, Union Bank, PNB and Indian Bank also slipped 1% each. Canara Bank, Central Bank, Bank of Baroda and Maharashtra Bank were in the red zone.

On the flip side, IOB is marginally up on the banking index.

Meanwhile, RBI Governor Shaktikanta Das said persistently large liquidity infusion by the central banks has ensured large borrowing by the government at a low rate and in a non-disruptive manner. Das said the RBI is closely monitoring the market and is in constant engagement with all India financial institutions such as NABARD and NHB.