Flat trading ahead of RBI’s rate decision
Benchmark stock indices stable as investors stayed on the sidelines; Selling in IT stocks
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Mumbai: Benchmark stock indices Sensex and Nifty closed flat in a volatile trade on Wednesday as investors stayed on the sidelines ahead of RBI’s interest rate decision on Thursday. The 30-share BSE Sensex declined 34.09 points or 0.05 per cent to settle at 72,152. During the day, it hit a high of 72,559.21 and a low of 71,938.22. The Nifty ended marginally up by 1.10 points or 0.01 per cent to 21,930.50.
IT shares TCS, Infosys and Tech Mahindra declined due to profit taking offsetting gains from select banking and pharma shares.
“The domestic market exhibited cautious range-bound movement, despite robust PMI data and favourable global cues ahead of RBI policy meet. While no change in stance is anticipated, the RBI’s commentary on any hints regarding potential rate cuts and improvements in liquidity will be closely monitored,” said Vinod Nair, head (research), Geojit Financial Services.
“While investors are bracing for a status-quo on the interest rate decision, what will be important to note is the tone of the announcement which would signal the central bank’s stance on interest rate going ahead,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd. “Markets erased all its gains towards the end as profit-taking in IT stocks and sluggish global indices weighed on the sentiment. Traders are adopting a cautious stance ahead of the credit policy announcement tomorrow,” he said.
