Flat trading ahead of RBI meet

Mumbai: Benchmark equity indices Sensex and Nifty snapped their seven-day winning streak on Thursday due to profit taking by investors after recent sharp gains triggered by negative cues from Asian markets.

The 30-share BSE Sensex fell 132.04 points, or 0.19 per cent, to close at 69,521.69 points. The gauge hit the lowest intra-day level of 69,320.53 points. Broader index Nifty also declined 36.55 points, or 0.17 per cent, to settle at 20,901.15 points.

Vinod Nair, head (research) at Geojit Financial Services, said: “The market took a breather as investors are in a wait-and-watch mode ahead of the monetary policy announcement. A better-than-estimated Q2 GDP growth, ease in global oil prices and drop in global bond yield will be the silver lining for the MPC. However, the expectation of a rise in domestic November inflation, drop in Rabi cultivation and increase in foodgrain prices will influence RBI to adopt a cautious approach in the short-term.”

Rupak De, senior technical analyst at LKP Securities, said: “Nifty hovered within the bands of 20,850-20,950 as sentiment remains somewhat cautious ahead of the RBI policy meet. The near-term trend remains sideways to weak as long as it stays below 21,000 points, a psychologically crucial level. A decisive breakout above 21,000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term.”

Analysts said crude oil prices in international markets failed to boost sentiment amid selling pressure from foreign institutional investors even as traders stayed on the sidelines ahead of RBI’s monetary policy decision. The Reserve Bank of India is expected to maintain the status quo on the interest rate in its bi-monthly monetary policy decision to be announced on Friday.