Sensex, Nifty fall from record highs ahead of RBI policy outcome

YES Bank, NTPC, Vedanta, Axis Bank and Coal India were among the main leaders.

Sensex, Nifty fall from record highs ahead of RBI policy outcome
NEW DELHI: Sensex and Nifty took a breather on Tuesday after scaling record high levels in the previous session as investors took profits off the table ahead of a market holiday. When markets open on Thursday, market participants will keep an eye on the RBI policy decision.

The Monetary Policy Committee (MPC) is widely expected to cut interest rates by 25 basis points (bps) at the second bimonthly policy review of this financial year.

Stocks, bonds, currency and commodities markets will remain closed on Wednesday on account of Eid al-Fitr.

For the day, BSE barometer Sensex fell 184 points or 0.46 per cent to 40,084. Its NSE counterpart Nifty settled at 12,022, down 67 points or 0.55 per cent.

Technology stocks came forth as the biggest drags.

Markets at a glance:
In the Sensex kitty of stocks, 13 ended in the green and 17 in the red. Hero MotoCorp, HCL Technologies, TCS, Asian Paints, IndusInd Bank and Bajaj Auto were among the top drags.

YES Bank, NTPC, Vedanta, Axis Bank and Coal India were among the main leaders.

The minnows too succumbed to profit taking, but still fared better than benchmark Sensex. BSE Midcap ended 0.22 per cent lower and BSE Smallcap 0.19 per cent.

Sectorally, teck and IT were the worst hit, shedding over 1.50 per cent each. Only six of 19 sectors on BSE ended in the green. Capital Goods index was the top gainer, followed by telecom but the gains were less than 1 per cent.

Factors that weighed on the market:

Global tensions persist
Stock markets remained under pressure on Tuesday as worries about a clampdown on the world's internet and social media giants compounded mounting global trade and recession jitters. MSCI's broadest index of Asia-Pacific shares outside Japan had ended down 0.3 per cent. China's blue-chip CSI300 dropped 0.9 per cent and the Hang Seng lost 0.66 per cent in Hong Kong.

Tech stocks under pressure
Tech stocks were the worst performers all across the globe and India was no exception.

Not only did IT and teck were the worst losers on BSE sectoral space, but top IT stocks like TCS and Infosys dragged the benchmark indices lower. Reports the US government was gearing up to investigate whether Amazon, Apple, Facebook and Google misused their market power, sent tech stocks falling across the globe.

Expert Take:
Intensified trade tensions and prediction of further delay of the onset of monsoon pushed investors to book profit. However, expectation of further cut in interest rate by RBI, falling oil prices and higher spending will improve earnings outlook. The sentiment remain buoyant despite premium valuation since FIIs are pumping liquidity to India as a chosen long-term equity in the emerging market in this ongoing uncertainty in the global market.
- Vinod Nair, Head of Research, Geojit Financial Services

Trade remained choppy and market closed at intraday low level with the loss of 0.5% as investors booked profits across the counters. IT, media and pharma remained on the selling radar. Meanwhile selling in the broader indices remained capped. For the next session, market participants will keep a close eye on RBI monetary policy verdict as well as its commentary on liquidity scenario
Rajnath Yadav, Senior Research Analyst, Choice Broking





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