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The S&P BSE Sensex turned flat after rallying as much as 95 points in trade on Monday, led by losses in ICICI Bank, Infosys, HDFC, ONGC, and Coal India. 

The 50-share Nifty index pared gains after reclaiming its crucial psychological level of 7800, weighed down by losses in FMCG, consumer durable, banks and realty stocks. Just Dial gained over 3 per cent while L%T Finance Holding added 5 per cent. Amtek Auto rallied 18 per cent while Kesoram Inds surged over 7 per cent. Man Infra and Just Dial gained over 3 per cent each. 

India's inflation probably cooled further in August, data on Monday is expected to show, adding pressure on its cautious central bank to cut interest rates again as soon as this month to spur economic growth.India's current account deficit widened to $6.2 billion,or 1.2 percent of gross domestic product, in April-June from the previous quarter, reflecting the worsening global economy as exports were sluggish while foreign investments fell.