3 hrs ago
Sensex and Nifty Fall as Investors Await RBI Policy Decision
Indian share markets started Wednesday lower after going up for two days.
The Sensex and Nifty are measures that track the prices of many shares.
The Sensex fell 460 points, and the Nifty fell about 165 points.
Oil prices had risen, which was one concern for investors.
Investors were also waiting to hear the Reserve Bank of India’s policy decision.
Governor Sanjay Malhotra was scheduled to announce it at 10 am after a three-day meeting.
Some large companies’ shares fell, while shares in Bajaj Finance and Bharti Airtel rose.
Foreign investors had sold shares worth Rs 2,961.30 crore on Tuesday.
Asian markets were lower, although US markets had finished higher the day before.
The Sensex fell 460 points to 72,599.05 and the Nifty dropped 164.80 points to 22,610.85 in early Wednesday trading.
The declines ended a two-day rally, with rising crude prices and caution ahead of the RBI policy decision weighing on sentiment.
Brent crude rose 1.01% to USD 101.6 per barrel; foreign institutional investors sold equities worth Rs 2,961.30 crore on Tuesday.
Titan, Asian Paints, Bharat Electronics, Maruti, Axis Bank and Mahindra & Mahindra were among the Sensex laggards; Bajaj Finance and Bharti Airtel gained.
RBI Governor Sanjay Malhotra was due to announce the policy decision at 10 am after a three-day Monetary Policy Committee meeting; Asian markets were lower, while US markets had closed higher Tuesday.
- Who
- Indian market investors, foreign institutional investors, and the Reserve Bank of India’s Monetary Policy Committee.
- What
- The Sensex and Nifty declined in early trading after a two-day rally.
- Where
- Indian stock markets.
- When
- Wednesday morning; the RBI decision was scheduled for 10 am.
- Why
- Rising crude oil prices and caution ahead of the RBI policy decision weighed on investor sentiment.
Key facts
- Sensex
- Down 460 points to 72,599.05 in early trade.
- Nifty
- Down 164.80 points to 22,610.85 in early trade.
- Brent crude
- Up 1.01% at USD 101.6 per barrel.
- Foreign investor activity
- FIIs sold equities worth Rs 2,961.30 crore on Tuesday.
- RBI policy decision
- Scheduled for 10 am Wednesday, following a three-day Monetary Policy Committee meeting.
- Previous session
- On Tuesday, the Sensex gained 685.34 points and the Nifty rose 220.35 points.
- Global markets
- South Korea's Kospi, Japan's Nikkei 225 and the Hang Seng were lower; US markets ended higher Tuesday.
Quotes
V K Vijayakumar
Chief Investment Strategist at Geojit Investments Limited
“Brent crude is back above USD 101 and there are no signs of any reversal in FPI outflows. Domestic liquidity and expectations of good Q2 numbers are supporting the market. The focus of the market today will be on the monetary stance and the message from the RBI Governor.”
rediff.com
deccanchronicle.com
telegraphindia.com
Ponmudi R
CEO of Enrich Money, an online trading and wealth-tech firm
“Geopolitical risks remain elevated, while crude oil prices have rebounded modestly from recent lows. WTI crude is trading near USD 90 a barrel, while Brent remains above USD 100. The Reserve Bank of India's Monetary Policy Committee decision due later today is likely to be the key domestic catalyst.”
rediff.com
deccanchronicle.com
telegraphindia.com
Sources
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