Markets fall ahead of RBI policy

The BSE benchmark Sensex on Monday fell 29 points to end at 26,597.11 on weakness in interest rate-sensitive banking and automobile shares, ahead of the Reserve Bank's monetary policy review. The 30-share index on Monday resumed better and gyrated in and out of positive terrain in a range of 26,715.77 and 26,518.01 before closing with a fall of 29.21 points. The 50-share CNX Nifty of the NSE also eased by 9.95 points, or 0.12 per cent, to 7,958.90.

"Buying was seen prominently in IT and Pharma stocks. On the other hand, selling in sectors such as Metal and FMCG limited the upside. Positive GDP data from US boosted market sentiment, while indecision was seen ahead of RBI monetary policy scheduled tomorrow," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Shares of IT majors TCS, Infosys and Wipro notched up 1-3 per cent gains tracking weakness in rupee against US dollar and strong US economic data that boosts prospects of their biggest market.

Fall in the ITC, ICICI Bank, HDFC Bank, HDFC, ONGC, Sesa Sterlite, Tata Steel, Bajaj Auto, Hero MotoCorp and Coal India mainly weighed on the market sentiment.

According to market participants, a near term major event is a monetary policy to be announced by the Reserve Bank of India (RBI) and Prime Minister Narendra Modi's meeting with US President Barack Obama.