Sensex, Nifty start on a cautious note

Mumbai:Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a cautious note Tuesday as investors await RBI's monetary policy decision, amid weak cues from global markets.

After scaling lifetime highs in the previous session, the 30-share index was trading 15.27 points, or 0.04 per cent, lower at 40,252.35, and the broader Nifty slipped 10.10 points, or 0.04 per cent, to 12,077.90.

Top losers in the Sensex pack include HCL Tech, TCS, Hero MotoCorp, Asian Paints, Infosys, Bajaj Auto, HUL and Maruti, shedding up to 2 per cent.

On the other hand, Yes Bank, NTPC, PowerGrid, L&T, Tata Motors and ITC were among the top gainers, rising up to 2.64 per cent.

On Monday, the BSE gauge settled 553.42 points, or 1.39 per cent, higher at 40,267.62, and the Nifty surged 165.75 points, or 1.39 per cent, to end at 12,088.55.

"With GDP growth and GST collections below expectations, market participants will keenly look ahead to RBI monetary policy and commentary. The market appears to be factoring at minimum a 25 bps rate cut in the upcoming RBI meet," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

The Reserve Bank of India's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.

According to traders, investors also took cues from global markets, which are weak on account of renewed global trade tensions.

Meanwhile, foreign institutional investors bought equity worth Rs 3,068.88 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 462.69 crore, provisional data available with stock exchanges showed.

Elsewhere in Asia, bourses in China, Japan and Korea were trading on a negative note in their respective early sessions.

Bourses on Wall Street too ended in the red on Monday.

On the currency front, the rupee also appreciated 18 paise to 69.08 against the US dollar.

Brent crude futures, the global oil benchmark, were trading 0.41 per cent lower at 61.03 per barrel.