Markets in the red after RBI keeps key rates unchanged

ICICI Bank, HDFC among top Sensex losers

Markets slipped into negative terrain led by financial stocks after the RBI kept key policy rates unchanged in its policy review today. However, the central bank cut the SLR by 50 basis points to 22%.

At 11:05AM, the 30-share Sensex was down 52 points at 25,671 while the 50-share Nifty was 14 points lower at  7,670.            .
__________________________
(Updated at 10:35AM)
After a flat start, benchmark indices continue to trade within a tight range.  At 1035 hrs, the Sensex was up 49 points at 25,771 and the Nifty added 12 points at 7,695.

The Reserve Bank of India is expected to keep interest rates steady at a policy review today. The tone is likely to be less dovish than at the RBI last policy meeting in June.

In the broader markets, the mid and smallcap indices added 0.2-0.4%.

Sectors & Stocks

Consumer Durables index down 0.3% was the only sectoral index in red while banking and IT indices were flat with a negative bias in opening deals.

HDFC, Hero MotoCorp, Maruti Suzuki, RIL and ICICI Bank down 0.3-0.9% were the top losers among Sensex-30.

Sun Pharma, ONGC, Infosys, Gail India and Hindalco up 1-1.6% were the major gainers.

Tata Power, Dr Reddys Lab, Tata Steel, TCS, Bajaj Auto, Mahindra & Mahindra, ITC and Wipro down 0.4-0.6% were some of the other names in red.

966 stocks advanced while 505 stocks declined on BSE.

Global Markets

Asian stocks slipped on Tuesday after a survey showed China's services sector growth fell to a record low, pouring cold water on the positive market mood following upbeat US earnings and relief over Portugal's rescue of its largest bank.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5%, turning negative after the China services purchasing managers' index(PMI) compiled by HSBC/Markit fell to 50.0 in July from a 15-month high of 53.1 in June.

Tokyo's Nikkei fell 0.2% and mainland Chinese shares slipped 0.5% from a seven-month high hit just before the data.

Overnight, stocks closed higher on Monday, lifted in a late rally driven by earnings from Warren Buffett's Berkshire Hathaway and broad gains across most sectors that helped the S&P 500 rebound from its largest weekly drop since 2012.

The Dow Jones industrial average rose 0.46%, to end at 16,569. The S&P 500 gained 0.72%, to 1,939. The Nasdaq Composite added 0.72%, to close at 4,384.