Sensex lower; rate sensitive stocks fall, L&T surges

Reuters Market Eye - The BSE Sensex and the Nifty are flat a day after posting a record closing high on Wednesday. Losses track lower Asian markets after a survey of Chinese manufacturers showed surprisingly soft results.

Interest rate sensitive stocks fall on caution ahead of RBI's policy review on Tuesday.

Previous expectations for the RBI to hold rates have been thrown into doubt after the central bank recommended making taming high consumer inflation a priority.

ICICI Bank falls 0.4 percent, while State Bank of India is down 0.3 percent.

Among automakers Mahindra and Mahindra is down 1.4 percent, while Bajaj Auto falls 0.7 percent.

 

However, Larsen & Toubro gains 3 percent after the company's Q3 margins at 11.6 percent beat some analysts estimates, dealers say.

Also, Cairn India gains 1 percent ahead of its December-quarter results later in the day.

(Reporting by Abhishek Vishnoi)