Sensex holds breath ahead of GDP data, RBI meet

MUMBAI (Reuters) - Indian stocks were mixed and traded in a narrow range on Monday as caution prevailed ahead of GDP data later in the day and the central bank's monetary policy meet on Tuesday.

India's economic growth likely picked up in the July-September quarter, outpacing China on improving domestic demand and manufacturing activity that could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday.

Asia's third-largest economy likely expanded 7.3 percent in the second quarter of the current financial year that ends in March, compared with 7 percent in April-June, according to analysts polled by Reuters.

 

"The market is indecisive. I don't think the market is assuming any direction looking at the indices," said Deven Choksey, managing director at KR Choksey Securities.

The broader Nifty was trading 0.06 percent lower, heading towards a 1.6 percent decline for the month.

The benchmark BSE Sensex was up 0.04 percent, on track to shed 1.9 percent this month.

Gains in auto, capital goods and consumer staples helped narrowly edge out losses in energy, materials, telecom and healthcare stocks.

Tata Motors rose 1.75 percent, Bajaj Auto gained 2 percent while Maruti Suzuki was up 1.12 percent ahead of monthly auto sales numbers on Tuesday.

Shares in Bharti Airtel were down 2.1 percent after the company announced capex plans that included 600 billion rupees of investments over the next three years.

IDBI Bank jumped over 9 percent on a report that the government was in talks to sell some stake in the bank.

(Reporting by Karen Rebelo in Mumbai; Editing by Gopakumar Warrier)