Markets cautious ahead of RBI policy review

Sensex trades on a flat note

The markets are trading on a flat note, in early trades, with the BSE Sensex at 17,138, down 13 points and the Nifty at 5,218, down 8 points.

Domestic cues will play an important role in deciding the market trend today as the Reserve Bank of India reviews the Monetary Policy later in the day. The markets are expecting a cut of 25 basis points in the policy rate.

US stocks ended mixed while European equities closed higher on Monday after better-than-expected U.S. retail sales data helped improve sentiment.

Asian shares were capped while the euro eased on Tuesday, as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt.

MSCI's broadest index of Asia Pacific shares outside Japan and the Nikkei average gained 0.1 per cent each.

Back home, the Nifty is likely to seek support around 5,205-5,190, while face resistance around 5,245-5,265, analysts say.

 

On the sectoral front, BSE Metal index has advanced nearly 1%. Coal India, Sterlite Industries, Sesa Goa and Tata Steel, up 1-2% each, are the notable gainers from among the Metal stocks.

IT, Realty and Auto stocks have gained marginally.

BSE Consumer Durables and Bankex indices are down 1% each.

HDFC Bank has shed 1% at Rs 526 and is the top loser on the Sensex. Reliance Industries, GAIL, Sun Pharma Industries and ICICI Bank, down 1% each, are among the other notable losers.

The gainers from the pack are Coal India, Sterlite Industries, Tata Motors, Cipla and TCS, up 1-2% each. Coal India is trading higher by 3% at Rs 349 after the company’s board of directors approved the draft of the fuel supply agreements (FSA) to be signed with power plants before April 20 with almost a negligible penalty level in case they fail to meet 80% commitment mark. The board has decided to keep the penalty at 0.01% of the value of shortfall.

The overall market breadth is positive as 696 stocks have advanced against 402 declining ones, on the BSE.