The Indian central bank is widely expected to leave policy rates unchanged and will instead stay focused on controlling inflation.
Mumbai : The benchmark Sensex ended over 67 points down in volatile trade on Tuesday as cautious investors trimmed their portfolios ahead of the Reserve Bank of India’s (RBI) policy announcement. The RBI’s two-day monetary policy review kicked off earlier on Tuesday. The central bank is widely expected to keep policy rates unchanged on Wednesday and will stay focused on controlling inflation, experts have said, reports PTI.
The 30-share Bombay Stock Exchange (BSE) Sensex opened on a negative note and finished at 32,802.44, down 67.28 points or 0.20 per cent. Meanwhile, the benchmark Nifty trimmed losses during fag-end trade to close marginally lower on Tuesday, following selling in metal, realty, information technology (IT), auto and infra stocks. Investors maintained their cautious stance ahead of RBI policy decision. Negative global cues and weak Nikkei India services PMI data also weighed on sentiment. However, buying in media, energy, banking and financials sectors capped losses.
The National Stock Exchange (NSE) Nifty opened lower and ended at 10,118.25, down by 9.50 points, or 0.09 percent from its previous close. Sector-wise, metals fell by 0.82 per cent, realty 0.55 per cent, auto 0.53 per cent, IT 0.51 per cent and FMCG 0.24 per cent.
However, PSU banks climbed 1.37 per cent, followed by media 0.91 per cent, energy 0.29 per cent, private bank 0.14 per cent and finance services 0.09 per cent.Major index gainers were SBI, Bajaj Finance, Yes Bank, Reliance, Bharti Airtel, IndusInd Bank, BPCL and Indiabulls Housing Finance. Losers included Wipro, Hero MotoCo, ONGC, Tata Steel, UPL, Eicher Motors, NTPC and Dr Reddy’s.
The rupee struggled to hold on to early strong gains and eventually ended the day almost flat at 64.38 against the US dollar, amid cautious trade ahead of the RBI policy call. The Indian currency soared to a fresh 3-month peak of 64.21 in early trade before retreating sharply.
The currency has rallied over the past few sessions, against the US dollar, largely supported by a strong rebound in India’s second-quarter GDP data and an acceleration in manufacturing activity.