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Domestic markets on Monday hit over one-week lows, with the benchmark BSE Sensex falling about 61 points to 29,122.27 and Nifty slipping 11.50 points to 8,797.40 on caution ahead of the Reserve Bank of India (RBI) policy review on Tuesday.
Profit-booking in recent outperformers, disappointing earnings from some blue-chip companies and mixed global cues also weighed on the stock market sentiment.
The Sensex opened lower at 29,143.63 and dropped further to 28,958.52 on fresh selling on weak Asian cues coupled with fresh foreign capital outflows. However, it recovered from mid-day losses to end above the 29,000-mark to 29,268.13 before ending at 29,122.27, a net loss of 60.68 points or 0.21 per cent. This is its weakest closing level since 29,006.02 on January 22. It has now lost 559.50 points or 1.89 per cent in the two sessions.
“RBI policy is being eyed by participants keeping rate-sensitives under pressure. The tone of RBI governor and views on inflation and further rate cuts are awaited. Also, another setback for markets was weak manufacturing data for January,” said WealthRays Securities, Director & CEO, Kiran Kumar Kavikondala.
Data showing that foreign portfolio investors sold shares worth a net Rs 771.55 crore last Friday also affected trading. Globally, Asian equity markets ended mixed as data showing China's manufacturing sector remaining in a poor state dampened investor confidence.
Among the 30 Sensex constituents, 17 scrips ended lower. Major laggards include Bharti Airtel (3.54 per cent), Dr Reddy's (3.04 per cent), HUL (2.63 per cent), ICICI Bank (2.60 per cent), ITC (2.17 per cent), Sesa Sterlite (1.76 per cent), Bajaj Auto (1.74 per cent) and Tata Steel (1.66 per cent).Coal India (1.65 per cent), M&M (1.52 per cent), NTPC (1.25 per cent) and Hero Motocorp (1.22 per cent) also fell.
