Markets end modestly higher as RBI policy meet begins

DN Bureau

Benchmark equity indices ended marginally higher after a choppy session Tuesday, with investors largely remaining on the sidelines as the RBI's monetary policy review meeting got underway.

File Photo
File Photo

Mumbai: Benchmark equity indices ended marginally higher after a choppy session Tuesday, with investors largely remaining on the sidelines as the RBI's monetary policy review meeting got underway.

Lack of cues from overseas markets also affected the momentum, traders said.

Also Read: Gold rises tracking firm trend overseas; silver gains 

After a subdued opening, the 30-share Sensex ended 34.07 points, or 0.09 per cent, higher at 36,616.81. Similarly, the NSE Nifty edged up 22.10 points, or 0.20 per cent, to 10,934.35.

In the Sensex pack, Hero MotoCorp, IndusInd Bank, Bajaj Auto, Maruti and M&M were the top gainers, spurting up to 2.66 per cent.

Investors were awaiting cues from the Reserve Bank of India's monetary policy review, traders said.

Also Read: Rupee rises 13 paise to 71.67 vs USD in early trade

The RBI's Monetary Policy Committee (MPC) began its three-day meet Tuesday to decide on key rates amid expectations that it would change stance to neutral on low inflation but may not cut rates due to fiscal challenges and rising oil prices.

"Market was volatile and faced stiff resistance at 10,950 levels. However, investors got bargaining opportunity in auto and private banks post the January auto sales and in expectation of dovish RBI monetary policy," said Vinod Nair, Head of Research, Geojit Financial Services.

Broader indices, however, ended in the red, with the BSE Midcap and Smallcap sliding up to 0.91 per cent.

Sectorally, realty, metals and FMCG indices ended in the red, while auto and financial services finished with gains.

On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of Rs 112.13 crore Monday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 65.22 crore, provisional data available with BSE showed.

The rupee, meanwhile, rebounded 4 paise against the US dollar to 71.76 intra-day.

The benchmark Brent crude futures rose 0.64 per cent to USD 62.91 per barrel. (PTI)

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