RBI MPC: Markets fall as investors turn cautious
The NSE Nifty slipped 26.45 points or 0.13 per cent to end at 19,570.85.
MUMBAI: Benchmark equity indices fell on Tuesday as investors turned cautious ahead of the key events - RBI’s monetary policy and the US inflation data - due to be announced later this week.
Continuous foreign fund outflows and weak trend in Asian and European markets also played spoilsport for the domestic markets.
The 30-share BSE Sensex fell 106.98 points or 0.16 per cent to settle at 65,846.50. During the day, it declined 200.85 points or 0.30 per cent to 65,752.63.
The NSE Nifty slipped 26.45 points or 0.13 per cent to end at 19,570.85.
Amid expectations of another status quo on the key interest rates, RBI Governor Shaktikanta Das-headed high-powered rate-setting panel MPC on Tuesday began its three-day meeting to firm up the next bi-monthly policy.
The decision of the Monetary Policy Committee (MPC) would be announced on Thursday, August 10, by Governor Das. “On the global front, investors are adopting a cautious approach even amidst declining bond yields as they await the release of crucial economic data. The significant drop in Chinese exports has also contributed to concerns within the global market.
“FIIs remain in a selling mode in the domestic market, yet active buying from DIIs is mitigating downside risks. Among sectors, PSU banks and pharma stocks inched up, while mid and small-cap stocks have continued to outperform the benchmark, showcasing their resilience,” said Vinod Nair, Head of Research at Geojit Financial Services.
From the Sensex pack, Power Grid, Mahindra & Mahindra, JSW Steel, HCL Technologies, Sun Pharma, Nestle, IndusInd Bank, Reliance Industries, Bharti Airtel and ITC were the major laggards. Tech Mahindra, Wipro, Bajaj Finance, State Bank of India, Bajaj Finserv, Axis Bank, Titan and ICICI Bank were among the major gainers
