Sensex closes in red; consumer durables stocks gain

A benchmark index of the Indian equities markets provisionally closed 134.37 points or 0.47 percent down in Monday's trade session.

The markets, which traded cautiously throughout the session, ended on a negative note ahead of the Reserve Bank of India's (RBI) fifth bi-monthly monetary policy review to be held here Tuesday.

Expectations are high of a rate cut by the RBI, as recent economic data showed easing of retail and consumer inflation coupled-with a down turn in industrial and gross domestic product (GDP) expansion.

"Going ahead, apart from the RBI meeting, fiscal reforms from the government will be needed for the markets to move higher on a sustainable basis," said Dipen Shah, head of private client group research, Kotak Securities.

However, the Geojit BNP Paribas' head - fundamental research, Vinod Nair said the RBI's commentary will be important to understand the possibility to cut rate, if not on Dec 2 but by next policy review.

"Bank stocks have reason to be disappointed as RBI is not likely to cut rate now. Continuous increase in rupee may tend RBI to wait and understand the trajectory post Nov 2014 due to base impact as mentioned in Sep 14 policy," Nair said.

Expectations of a dovish move by the RBI to cut key lending rates led to a healthy buying in interest sensitive stocks like consumer durables, information technology (IT)and automobile stocks.

However, oil and gas, metal and capital goods scrip came under intense selling pressure.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 28,748.22 points, closed trade at 28,559.62 points (provisionally), down 134.37 points or 0.47 percent from the previous day's close at 28,693.99 points.

The Sensex touched a high of 28,809.64 points and a low of 28,538.44 points in the trade so far.

The S&P BSE consumer durables index gained 318.83 points, IT index gained 93.84 points and automobile index was higher by 63.87 points.

However, oil and gas index moved down 280.65 points. Metal index plunged 241.59 points and capital goods index lost 224.97 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed the trade's trade in red. It was down 32.35 points or 0.38 percent at 8,555.90 points.