Sensex, Nifty cautious ahead of RBI policy outcome, key earnings
The RBI MPC will announce its third bi-monthly policy of the ongoing fiscal today.
The RBI MPC will announce its third bi-monthly policy of the ongoing fiscal today amid a broader expectation of a fourth rate cut of Calendar 2019.
Several top economists in an ET survey projected a 25 basis points rate cut, as multiple high-frequency data points signalled an acute slowdown across multiple sectors of the economy, while inflation remains benign, giving enough room for a rate cut. The Indian economy has been growing at its slowest in nearly five years.
Adani Ports, Cipla, HCL Technologies, M&M and Tata Steel are among Nifty50 companies that will announce their quarterly results today.
Around 9:25 am, the BSE Sensex was 70 points, or 0.19 per cent, down at 36,907, while the NSE Nifty50 was at 10,927, down by 21 points or 0.19 per cent.
BSE Midcap and Smallcap indices were up 0.10 and 0.17 per cent, respectively, around that time, outperforming the benchmark Sensex.
YES Bank, IndusInd Bank, Hero MotoCorp, Infosys and Sun Pharma were among the top gainers in the Sensex index.
On the other hand, Tata Steel, Vedanta, Mahindra & Mahindra, Axis Bank, Tata Motors and Kotak Mahindra Bank were among the top losers.
Metal and consumer durables pack on BSE fell over 1 per cent, while IT, healthcare and teck edged up by half-a-percent.
The rupee on Wednesday opened 15 paise down at 70.98 against the US dollar. Sustained outflow by overseas investors and higher crude oil prices weighed on the domestic currency.
Asian shares steadied slightly as investors caught their breath from a searing week-long selloff, with steps taken by Chinese authorities to contain a sliding yuan helping calm fears of a full-blown Sino-US trade and currency war, Reuters reported.
Participants said other than the rate cut, the economy needs urgent measures from the government to boost the confidence as many quarters of the economy are showing clear signs of pain.
As per a report by Reuters, slumping sales of cars and motorcycles are triggering massive job cuts in India's auto sector, with many companies forced to shut down factories for days.
Meanwhile, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 2,108 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 2,289 crore, data suggests.