Benchmark share indices lost further ground after the Reserve Bank of India maintained a status quo on key policy rates and the cash reserve ratio. However, the central bank reduced the statutory liquidity ratio by 100 basis points to 23% from 24%.
The 30-share Sensex was down 58 points at 17,086 and the 50-share Nifty was down 20 points at 5,180.
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(Updated at 10:41hrs)
Markets have slipped into the red on the back of selling pressur visible in the rate sensitive stocks ahead of the RBI's mid-quarter policy review which is to be announced later in the day today. Thwe Sensex has slipped 11 points to 17,133 and the 50-share Nifty has slipped 3 points to 5,196 levels.
Meanwhile, the rate sensitive sector stocks are facing the selling pressure in the morning deals. The BSE auto index is the top sectoral loser, down 0.6% at 9,025. Capital goods and banking indices are also trading weaker by 0.4% each. Among the other sectors, metal, consumer durables, teck, power and PSU indices are trading in the red.
From the banking space, Bank of Baroda, PNB, Indusind Bank, SBI, Kotak Mahindra Bank and Union Bank are trading lower by 0.4-2% each.
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(Updated at 9:20 AM)
Markets have opened marginally higher ahead of the Reserve Bank of India's mid-quarter policy review which is to be announced later in the day today. The Sensex has jumped 62 points to open at 17,205 and the 50-share Nifty has advanced 15 points to open at 5,215 levels.
Although bankers expect the central bank to cut the Cash Reserve Ratio (CRR) by up to 0.5 per cent, a rate cut seems unlikely given the elevated inflation level.
Overnight, US stocks closed mostly flat on Monday as investors paused following the best two-day run this year, with central bank meetings and a full load of US economic data looming.
The Asian markets are trading marginally higher ahead of monetary policy meetings by the European Central Bank and the US Federal Reserve, with scepticism countering expectations for more stimulus steps to support fragile global economies.
The Hang Seng is up 0.8% at 19,742, Nikkei is up 44 points at 8,679 and the Taiwan is up 0.7% at 7,209.
Back home, Cipla is the top gainer among the Sensex stocks, up 1.5% to open at Rs 338. Wipro, TCS, Sun Pharma, ONGC, jindal Steel, ITC, Bharti Airtel and Dr Reddy's Labs have also opened higher by 0.5-1% each.
On the other hand, rate sensitive stocks are trading lower in trades today on account of profit booking post the sharp rise witnessed by them in yesterday's session. Tata Motors, State Bank of India, Hero MotoCorp, BHEL, Infosys, Larsen & Toubro, Maruti Suzuki and Tata Steel have opened lower in trades today.
On the sectoral front, consumer durables index is the top sectoral gainer, up 0.8% at 6,467 levels. healthcare, FMCG, oil & gas, IT and metal indices have opened on a flat note, up 0.2-0.6% each.
At the same time, capital goods, auto, power, bankex and PSU indices have opened lower.
Among the individual stocks, Hexaware Technologies has opened higher by 3% at Rs 120 after reporting 48% year-on-year (yoy) growth in net profit at Rs 89 crore for the second quarter ended June 2012. Income from operations grew 50% at Rs 500 crore on y-o-y basis.
The broader markets are trading flat with BSE mid-cap and small-cap indices advancing 0.2% each.
The overall breadth is positive as 704 stocks are advancing while 502 are declining.