Sensex slips for sixth day, down 47 points ahead of RBI review

The benchmark Sensex gave up initial gains and fell for the sixth straight day, losing 47 points today amid increasing expectations of an interest rate hike by the RBI to combat inflation.
Rate-sensitive bank and realty stocks were among the five BSE sectoral indices that declined. The healthcare and consumer durables indices moved up.
HDFC Bank and HDFC, along with heavyweight Reliance Industries, dragged the Sensex lower while TCS and Bharti Airtel lifted it. Coal India and NTPC were among the major index losers.
The 30-share S&P BSE Sensex opened on a strong note and climbed about 125 points to the day's high of 20,784.03, following firm Asian cues after an overnight rise on Wall Street on the back of upbeat economic data.

However, it fell on profit-booking ahead of the central bank's policy review meeting tomorrow. The index closed at 20,612.14, losing 47.38 points or 0.23 per cent.
The Reserve Bank is expected to increase its key repo rate by 25 basis points after retail and wholesale inflation remained high in November.

"Concerns over weaker economy and probability of higher interest rates led to selling pressure in rate-sensitive stocks," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio Ltd.
Over the past six sessions, the Sensex has lost 714 points from its peak close of 21,326.42 on December 9.
The 50-share CNX Nifty on the National Stock Exchange fell 15.65 points, or 0.25 per cent, to 6,139.05. The SX40 on the MCX Stock Exchange fell 20.64 points to 12,264.64.

"Stock markets opened in the green but ended in the red. This was mainly on the back of uncertainty regarding the outcome of the upcoming RBI Monetary Policy Review. It was also compounded by speculation over the probable decisions at the Fed's FOMC meeting in the US," said Sunil Jain, Head-Equity Research-Retail at Nirmal Bang Securities Pvt.
European stocks opened weak ahead of the US Federal Reserve's two-day meeting starting later today.