Sensex and Nifty falls marginally ahead of RBI interest rate outcome

Markets open flat as RBI readies 5th bi-monthly monetary policy

The 30-scrip BSE Sensex opened 0.01% or 3.94 points lower at 32,798.50 points. Image Source Zeebiz

The Reserve Bank of India's monetary policy committee is likely to keep the policy repo rate on hold in the upcoming monetary policy review on account of various factors, including likelihood of retail inflation nudging up due to higher prices of vegetables and protein items, rising crude oil prices, risk of fiscal slippage, and possibility of the US Fed upping interest rates.

The 30-share Sensex opened on a negative note on across- the-board losses and touched a low of 32,682.52.

At 6.30 am, Nifty futures on the Singapore Stock Exchange were trading 27 points, or 0.27 per cent lower at 10,133.50, indicating a negative start for the Nifty50 in India.

Meanwhile, services sector activity slipped into the contraction territory during November, post the implementation of the Goods and Service Tax (GST) that led to sluggish demand and lower customer turnout, a monthly survey said. "The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation".

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Major Sensex losers were: Hero MotoCorp, down 2.31 per cent at Rs 3,522.15; Wipro, down 2.29 per cent at Rs 283.40; Tata Steel, down 1.71 per cent at Rs 675.95; NTPC, down 1.70 per cent at Rs 176.75; and Dr. Reddy's Lab, down 1.61 per cent at Rs 2,205.

On the NSE, 682 shares advanced, 1,072 declined, while 67 remained unchanged. It finally closed at 32,869.72, up 36.78 points, or 0.11 per cent. The S&P500 index fell 0.11 per cent to 2,639.44 after touching a record high earlier in the session. "We also had some index heavyweights supporting positivity, putting a temporary stop to the negativity that we had seen late last week", said Anand James, chief market strategist, Geojit Financial Services.

The Nifty mid-cap index rose by 0.03 per cent, while small-caps fell 0.25 per cent.

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