Mumbai, Sep 20 (IANS): Key Indian equity indices traded on a flat note during the mid-afternoon session on Wednesday as investors remained cautious ahead of the US Federal Open Market Committee policy meet outcome.

The outcome of the two-day US Federal Reserve meeting is slated for later in the evening (India time).

Besides, escalating geo-political tensions related to the Korean peninsula along with a weak rupee and profit booking in auto, banking and IT stocks capped gains.

At 12.30 p.m., the wider Nifty50 of the National Stock Exchange (NSE) traded at 10,144.95 points -- fractionally lower by 2.60 points or 0.03 per cent -- from its previous session's close.

In contrast, the 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,467.10 points, traded at 32,414.09 points -- up 11.72 points, or 0.04 per cent, from its previous close at 32,402.37.

The Sensex has so far touched a high of 32,499.88 points and a low of 32,399.84 during intra-day trade.

The BSE market breadth was bullish -- 1,244 declines and 1,121 advances.

Healthy buying was witnessed in capital goods and healthcare stocks.

"Range bound movement continue in the benchmark indices on Wednesday, as investors awaited the outcome of the two-day Fed policy review later in the day," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

"A weakness in the rupee and concerns over the war of words between the US and North Korea may also dampen the sentiment," Desai added.

On Tuesday, the benchmark indices closed on a flat-to-negative note on the back of negative global cues along with huge outflow of foreign funds.

The Nifty50 closed at 10,147.55 points after touching a fresh high of 10,178.95 points during intra-day trade, while the Sensex closed at 32,402.37 points -- down 21.39 points, or 0.07 per cent.