Markets opened marginally lower on account of global weakness and expectations of a 25 bps rate hike. The Sensex fell 30 points to 20,322 and the Nifty declined 10 points to 6109.
Reserve Bank of India in its macroeconomic outlook hinted raising rates for the sixth time to anchor inflationary expections as inflation continued to remain stubbornly high at around 8.6%, above the RBI's comfort level of 6%. Angel Broking in a research note indicated that RBI will hike reverse repo and repo rate by 25 bps to 6.25% and 5.25% each, and CRR (Cash Reserve Ratio) may remain unchanged considering current liquidity crunch.
SMC Global Equity in its morning note said, "markets are likely to trade in a range taking cues from mixed global markets and volatility may arise ahead of the Reserve Bank of India's monetary policy reviewed today."
Metals lost sheen across Asia as investors turn cautious ahead of US elections and Federal Reserves decision on monetary easing. Hong Kong shares were in a tight range, the Hang Seng index fell 0.2%, metal shares were leading the losses. Japan's Nikkei dipped towards seven week low on back of rising Yen, the index fell 0.1%. China's Shanghai Composite declined 0.6%, Seoul Composite and Straight times were trading marginally in the red.
In India, metal stocks SAIL and JSW Steel were in the limelight, down 0.7% and 1% each after they cut the prices of hot rolled steel products by around two percent. Other stocks such as RNRL fell 0.4% on news that it will stop trading from Nov 10 due to merger with Reliance Power, Emami surged 6% on account of price hike, and Tulip Telecom rose 1% after it received Rs 38 cr order.
