The domestic markets slipped into negative territory on Wednesday after opening at fresh record highs as the time distance of the RBI’s decision on repo rate shortens. The market participants turned cautious and sentiments soured as the Reserve bank of India is all set to conclude the third bi-monthly policy meeting in a couple of hours today. The benchmark Sensex edged below 32,600 points and the broader Nifty 50 slips below 10,100 level.
The major drag came in the way as the selling pressure increases in the heavyweight stock such as HDFC, ITC, L&T, Infosys and Tata Motors. The stocks of Reliance Industries, NTPC, Hero MotoCorp supported the most in balancing the Sensex. Shares of Lupin rose 3.13% to Rs 1,049.9 as the drugmaker is scheduled to announce its earnings for the April-June quarter.
Most of the sectoral indices of NSE traded in red with a loss up to 0.82% which includes Nifty Auto, Fin Service, FMCG, IT, Media, Metal, Pharma. The Reserve Bank of India will likely cut its main policy rate by 25 bps as the inflation slumped to a more than 6-1/2 year low, sparking pressure from the government and others to ease rates further.
Early gains were reversed as investors booked profits in stocks such as Hindalco and Vedanta, down as much as 1.4% each, after two consecutive sessions of gains. Bajaj Auto was down as much as 1.3% after reporting a 6.7% fall in total sales for July. Meanwhile, Hero MotoCorp led gains, rising as much as 3% to its highest since 20 June after the two-wheeler maker on Tuesday reported a 17.1% jump in July sales.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 945.83 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) net bought shares of Rs 1,390.65 crore. Most Asian indices rose, helped by strong results from Apple. US stocks closed higher yesterday and the Dow Jones Industrial Average racked up a fifth straight record high.