Mumbai, Aug. 10 -- The key equity benchmarks erased their early losses and traded with small gains in early trade as investors assessed a slew of Q1 FY27 earnings announced over the weekend. However, market sentiment remained cautious following the introduction of the Closing Auction Session (CAS) mechanism last week, which had led to heightened volatility during the final minutes of trading.

Market participants continued to closely monitor developments surrounding the US-Iran conflict and the progress of the monsoon. Persistent geopolitical uncertainty, along with its potential impact on crude oil prices, kept investors cautious and limited the upside in the broader market.

Investors are also expected to track domestic inflation data, ...