BENGALURU, March 12 Reuters India39;s bluechip indexes rose marginally in a volatile session on Tuesday ahead of key inflation data, while small and midcaps declined on concerns over stretched valuations.

The NSE Nifty 50 inched up 0.01 to 22,335.70, while the BSE Sensex settled 0.22 higher at 73,667.96.

The indexes traded between losses of 0.35 and gains of 0.6 during the session.

HDFC Bank rose 2.22, its best in three weeks and led gains on the index, driven by multiple block deals.

Other largecaps like Reliance Industries, Tata Consultancy Services, Infosys rose between 0.6 and 2.

In contrast, profit booking continued in the broader, more domestically focussed small and midcaps on the back of markets regulator flagging likely 39;froth and irrational exuberance39; in the segments.

They shed 2 and 1.4, underperforming the benchmark indexes.

We expect largecaps to continue to do well, but the small and midcap space is getting hurt due to regulator39;s concerns over rich valuations and froth, said Yogesh Nagaonkar, CEO, Rowan Capital Services.

Small and midcap stocks have lost about 7 and 2 respectively since SEBI sought more disclosures on Feb. 27, compared to a 0.6 rise in Nifty 50.

IT gained 0.64 ahead of key U.S. inflation data, which could influence the timing of the Federal Reserve39;s interest rate cuts. IT firms derive much of their revenue from the U.S.

Investors also await India39;s inflation data, which is expected to have declined to a fourmonth low…