Sensex, Nifty retreat from record highs ahead of RBI policy

Retreating from record highs, the benchmark Sensex today slipped 134.37 points to 28,559.62 and Nifty dipped 32.35 points to 8,555.90 in their first drop in four sessions on caution ahead of RBI's policy review and fag-end selling due to weak global cues.
Refinery, power, metal and capital goods shares fell while consumer durable and IT stocks attracted buying support.
Oil stocks fell after global crude prices hit 5-year low. However, airline stocks rose after jet fuel became cheaper.
The S&P BSE 30-share Sensex resumed better and firmed up further to a high of 28,809.64 on initial buying after the manufacturing output accelerated in November at the quickest pace in nearly two years. Tepid GDP growth also boosted hopes of a rate cut by RBI in its monetary policy meeting tomorrow.

However, Sensex failed to maintain initial gains and dropped to finish at 28,559.62, a loss of 134.37 points or 0.47 per cent, amid a weak global trend. In previous three days, it had risen by 355.94 points or 1.26 per cent.
"Participants preferred to sit on sidelines and booked some profit ahead of RBI's monetary policy review scheduled for Tuesday," said Jayant Manglik, President-retail distribution, Religare Securities.

The CNX 50-share Nifty also opened higher and moved up further to new lifetime high of 8,623.00 before settling at 8,555.90, logging a loss of 32.25 points or 0.38 per cent.
Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 935.86 crore last Friday, as per provisional data.

Jewellery stocks, including Gitanjali Gems and Titan Company, shined after RBI withdrew 80-20 rule and restrictions on import of gold.
Asian stocks ended down as a Chinese manufacturing gauge dropped and American holiday spending slowed, reports said.
Key indices in China, Hong Kong, Singapore, South Korea and Taiwan dropped by 0.10 per cent to 2.58 per cent while Japan's Nikkei ended higher by 0.75 per cent.
European stocks were also trading lower as key indices like France, Germany and UK moved down by 0.38 per cent to 0.99 per cent.