New Delhi, April 16 -- After a strong two-day rally, Indian benchmark indices paused for breath on April 16, with the Sensex and Nifty trading flat during the afternoon session. Global cues weighed on investor sentiment, even as broader markets showed resilience. Midcap and smallcap stocks outperformed, gaining nearly 1 per cent, while the India VIX-a barometer of market volatility-fell another 3 per cent, hinting at cooling nerves on Dalal Street.

While domestic indices have managed to recoup losses from April 2, following the US's 26 per cent reciprocal tariff announcement, the underlying tone remains cautious. Markets got an uplift after the US administration announced a 90-day pause on the implementation of the tariffs, providing som...