New Delhi, Dec 4 (IANS): With a slowing economy and low economic sentiments, investors in the Indian equity market are eagerly awaiting the RBI Monetary Policy Committee's (MPC) decision on lending rates, which is scheduled to be announced on Thursday.

There are high expectations of a rate cut announcement by the Reserve Bank of India (RBI) post its monetary policy meet. A rate cut on expected lines would boost the equity indices.

"Market is cautiously awaiting RBI monetary policy meet to be held tomorrow where it expects the central bank to deliver its sixth rate cut of the year despite higher inflation. 25 bps rate cut is already factored in by the market and thus investors would watch out for any surprise on that front and the commentary on future path," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

He added that globally, sentiments have turned positive with US and China inching close towards the trade deal and investors would watch out for further development on that front.

On Wednesday too, reports of the US and China nearing a trade pact helped the indices revive in the last hour of trade.

After a largely, subdued trade, the BSE Sensex on Wednesday closed at 40,850.29, higher by 174.84 points or 0.43 per cent from the previous close of 40,675.45 points.

It had opened at 40,606.01 and touched an intra-high of 40,886.87 point and a low of 40,475.83 points.

The Nifty50 on the National Stock Exchange closed at 12,043.20, higher by 49 points or 0.41 per cent from its previous close.

"Equity market bounced back in green towards the last leg of the market after being range-bound throughout the day. Market sentiments turned positive post the news that US and China were closer to signing trade deal despite heated rhetoric," Khemka said.

He added that on the sectoral front, all the indices ended in green, except realty.