Nifty slips below 8,800 as investors await RBI policy decision

The benchmark indices retreated on Tuesday from four-month highs hit in the previous session as investors stayed on the sidelines ahead of the Reserve Bank of India's policy decision due tomorrow. Weakness in other Asian markets also spoiled sentiment.

At 02:58 pm, the S&P BSE Sensex was trading at 28,295, down 143 points, while the broader Nifty50 was ruling at 8,758, down 43 points. 

In the broader market, the BSE Mid-Cap and the BSE Small-Cap indices outperformed the frontline indices to rise 0.1% and 0.3%, respectively. 

The market breadth indicating the overall health of the market was positive. On BSE, 1,368 shares rose and 1,300 shares fell. A total of 140 shares were unchanged.

Most Indian automakers were down, contributing to over three-fourths of Nifty's decline, with Tata Motors and Mahindra & Mahindra falling as much as 2.4% and 1.7% respectively.

Among gainers, Punjab National Bank rallied 4% to Rs 156 after the company reported an over four-fold jump in net profit to Rs 207.18 crore for the quarter ended December 31, 2016-17, on account of lower provisioning.

ITC rallied as much as 5.6% to hit its 52-week high after the Specified Undertaking of the Unit Trust of India (SUUTI) sold 2% stake in the company via block deals.

Overseas, Asian stocks were trading with small losses amid reports of China's foreign exchange reserves had fallen for a seventh month adding to nervousness.