Mumbai, Nov. 4 -- The key equity benchmarks pared their initial gains and traded marginally lower in early-afternoon deals, as investors resorted to profit booking at elevated levels following the recent rally. Cautious sentiment also prevailed amid concerns over the sustainability of massive investments in artificial intelligence (AI)-related companies, with investors questioning whether these investments would generate adequate returns. The Nifty hovered around the 23,800 mark.

Media shares extend their gains for second consecutive trading session.

At 12:25 IST, the barometer index, the S&P BSE Sensex declined 43.38 points or 0.03% to 76,896.75. The Nifty 50 index shed 0.50 points or 0.01% to 23,809.58.

The broader market outperforme...