Markets trim gains after RBI keeps policy rates unchanged

Markets trimmed early gains after the RBI kept key policy rates unchanged

Markets trimmed early gains to briefly dip into negative terrain after the RBI kept  repo rate and CRR unchanged at its monetary policy review today.

At 11:15AM, the 30-share Sensex was down 5 points at 26,592 and 50-share Nifty was down 4 points at 7,955.

Bank shares were the top losers along with index heavyweights Reliance Industries and Infosys.  However, gains in mortgage lender HDFC helped most of the losses post the RBI announcement.

HDFC, L&T, Sun Pharma and Dr Reddy's Labs were the top Sensex gainers while Axis Bank, ICICI Bank, Infosys and Reliance Industires were the top losers.

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(Updated at 9:19AM)

It was another day of flat start for the market tracking weak Asian cues with major focus on Reserve Bank of India's monetary policy review later today. At 0916 hrs, the Sensex was down 27 points at 26,569 and the Nifty slipped eight points to trade at 7,951.

However, the broader markets opened in green with the midcap index up 0.1% and teh smallcap index up 0.2%.

Sectors & Stocks

On the sectoral front, Health Care and Realty indices up 0.6% were the top gainers in opening trades.

Meanwhile, Metal, IT, FMCG and Bankex indices were down 0.1-0.5%.

Hindalco, GAIL, M&M, Sesa Sterlite, Axis Bank, TCS, Infosys, ITC and Coal India which lost 0.5-1.5% were the top losers among Sensex-30.

Among the gainers were Tata Power, HDFC, Dr Reddy’s, BHEL, Maruti and Bharti Airtel up 0.7-1.3%.

The market breadth was positive due to the strength in broader markets. 913 stocks advanced while 461 stocks declined on BSE.

Global Markets

Asian markets were in hesitant mood on Tuesday as investors wondered what China's response would be to civil unrest in Hong Kong, while the U.S. dollar was on track to post its biggest monthly gain in well over a year.

The unrest was an added complication for investors amid long-standing concerns about the health of China's economy.

An HSBC survey of manufacturing (PMI) for September disappointed slightly by showing a final reading of 50.2, steady on August but down from its preliminary 50.5.

Hong Kong's Hang Seng Index shed another 0.9% to its lowest in three months. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5% having already fallen sharply on Monday.

US stocks ended lower on Monday following protests in Hong Kong that added to worries about Chinese growth. The Dow Jones Industrial average fell 0.25%, to 17,071; the S&P 500 lost 0.25%, to 1,978; and the Nasdaq Composite dropped 0.14%, to 4,506.