Stock Market: Sensex breaks 107 points before Reserve Bank’s monetary review, Nifty also flat
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stock market: On the second trading day of the week, there was a break on the momentum going on in the Indian market for two days. After a sluggish start to the market in the morning, indices ran towards the red mark. BSE Sensex remained in loss of 107 points. Investors turned cautious this week ahead of the Reserve Bank of India’s monetary policy review and US inflation data, which led to a fall in the market. Continued withdrawal of capital by foreign institutional investors and a weak trend in Asian and European markets also kept traders down. Perception was adversely affected. The thirty-share BSE Sensex closed at 65,846.50 points, down 106.98 points, or 0.16 percent. At one point during the trading, it had broken up to 200.85 points. The National Stock Exchange’s Nifty also closed at 19,570.85 points, down 26.45 points, or 0.13 percent.
Monetary policy will be announced on August 10
The three-day meeting for the bi-monthly monetary policy review of the Monetary Policy Committee (MPC) headed by Reserve Bank Governor Shaktikanta Das began on Tuesday. The results of the meeting will be announced on Thursday, 10 August. There is a possibility that RBI will once again keep the policy rate unchanged. Vinod Nair, Head of Research, Geojit Financial Services, said that despite the decline in bond yields, investors are adopting a cautious approach on the global front. Concern has also increased in the global market due to a significant decline in China’s exports. He said that FIIs remain sellers in the domestic market. However, the market is getting support from the buying of domestic institutional investors. Sector-wise, public sector banks and pharmaceutical stocks gained momentum. Mid and small cap stocks have outperformed the benchmark index, indicating strength in this segment.
BSE Smallcap gained 0.25 percent
PowerGrid, Mahindra & Mahindra, JSW Steel, HCL Technologies, Sun Pharma, Nestle, IndusInd Bank, Reliance Industries, Bharti Airtel and ITC were major losers in Sensex stocks. On the other hand, the gainers included Tech Mahindra, Wipro, Bajaj Finance, State Bank of India, Bajaj Finserv, Axis Bank, Titan and ICICI Bank. BSE Smallcap gained 0.25 percent and Midcap 0.15 percent. In other markets of Asia, South Korea’s Cospi, China’s Shanghai Composite and Hong Kong’s Hangseng were in loss while Japan’s Nikkei was in profit. There was a declining trend in early trade in European markets. US markets remained in positive territory on Monday.
Crude oil price fell
Global oil benchmark Brent crude declined by 1.38 per cent to trade at $84.16 per barrel. According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 1,892.77 crore on Monday. Mehta Equities Ltd. Prashant Tapase, senior vice-president (research), said that though the global trend will determine the course of the market, but investors are cautious about the RBI’s monetary policy review on Thursday and the release of inflation data in the US.
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