Sensex down 78 points, Nifty below 10100 late morning

Gladys Abbott
December 7, 2017

Markets turned weak in a choppy trade on Tuesday as cautious investors kept their powder dry ahead of RBI's policy announcement amid subdued macro cues.

The Reserve Bank of India's monetary policy committee is likely to keep the policy repo rate on hold on account of various factors, including likelihood of retail inflation nudging up due to higher prices of vegetables and protein items, rising crude oil prices, risk of fiscal slippage, and possibility of the US Fed upping interest rates.

The 30-share Sensex opened on a negative note on across- the-board losses and touched a low of 32,682.52. However, the losses were trimmed by good buying in stocks of banking majors like State Bank of India (SBI) and Kotak Bank and index heavyweights like Reliance Industries.

At 1451 hours, Sensex was trading at 32,627.81, below 175 points or 0.53%, while Nifty came low by 67 points or 0.66% trading at 10,051.65.

Trading mood was also impacted as Fitch Ratings on Monday cut the country's GDP growth forecast for the current fiscal to 6.7 per cent from the earlier projected 6.9%.

Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,470.56 crore while domestic institutional investors bought stocks worth Rs 1,074.39 crore.

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Public sector banks were the most hit after RBI's policy as Nifty PSU bank index was tradin at 3,762.40 down 70 points or 1.82%.

Hero MotoCorp was the worst performer in the Sensex pack, falling 2.31%, followed by Wipro at 2.29%.

Shanghai Composite Index too fell 0.61 per cent in early trade today.

"A weak dollar overseas capped the rupee losses", a dealer said.

Sector-wise, the S&P BSE consumer durables index declined by 131 points, auto index by 130.49 points and metal index by 117.14 points. Among the Asian bourses, Hong Kong's Hang Seng was down 1.12 per cent while Japan's Nikkei shed 0.90 per cent.

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