Indian equities trade lower ahead of RBI monetary policy review

Caution ahead of the first bi-monthly monetary policy review of the Reserve Bank of India (RBI) in fiscal 2017-18, along with negative global cues, pulled the Indian equity markets lower during the mid-afternoon trade session on Thursday.

The key indices traded in the red -- with losses close to half a per cent each -- as metal, capital goods and consumer durables stocks faced heavy selling pressure.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) traded at 9,224.45 points (at 1.00 p.m.) -- down 40.70 points or 0.44 per cent.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,946.89 points, traded at 29,839.71 points -- down 134.53 points or 0.45 per cent from the previous close at 29,974.24 points.

The Sensex has so far touched a high of 29,948.44 points and a low of 29,817.59 points during the intra-day trade.

The BSE market breadth was marginally bearish -- with 1,394 declines and 1,256 advances.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, most market participants are expecting the RBI to keep interest rates unchanged.

"The Bank Nifty commenced the day on a negative note tracking weak opening of the Indian equity markets. However, it witnessed some recovery from lower levels ahead of the RBI monetary policy scheduled for later in the afternoon," Desai told IANS.

On sector-specific movement, Desai said: "Among sectors, IT sector stocks faced resistance, while banking, pharma, auto, oil-gas sector stocks traded on a sideways-to-bearish note due to profit booking."

On Wednesday, healthy inflow of foreign funds, along with positive tax collection data and global cues elevated the Indian equity markets to close at new highs.

The NSE Nifty closed at a record high of 9,265.15 points -- up 27.30 points or 0.30 per cent. Similarly, the BSE Sensex rose by 64.02 points or 0.21 per cent to close at a new high of 29,974.24 points.

--IANS

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