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Equity indices close slightly lower, banking stocks trim losses
Equity indices close slightly lower, banking stocks trim losses

IANS

Mumbai, Dec 5 (IANS) Key Indian equity indices recovered from their day's lows to close with marginal losses on Tuesday even as broadly negative global cues, along with disappointing services sector data and outflow of foreign funds, kept market sentiment subdued.

According to market observers, investors traded with caution ahead of the outcome of the Reserve Bank of India's (RBI) two-day policy review meet on Wednesday. However, the losses were trimmed by good buying in stocks of banking majors like State Bank of India (SBI) and Kotak Bank and index heavyweights like Reliance Industries.

On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) edged lower by 9.50 points or 0.09 per cent to 10,118.25 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,802.44 points -- down 67.28 points or 0.20 per cent from Monday's close.

The BSE market breadth was bearish -- 1,549 declines and 1,105 advances.

"Markets ended with marginal losses on Tuesday after a bounce back from the lows of 10,069 curbed the losses. It was a volatile session ahead of the outcome of RBI's MPC (Monetary Policy Committee) meet tomorrow," Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

"Negative global cues and local service sector survey data for November weighed on the market sentiments. Broad market indices like the BSE mid-cap index ended with gains, thereby outperforming the main indices," Jasani added.

Data released during market hours revealed that the Nikkei Services purchasing managers' index in November fell to 48.5 points -- the lowest since August -- from 51.7 the previous month.

In the broader markets, the S&P BSE mid-cap index closed higher by 0.41 per cent, whereas the small-cap index inched down by 0.03 per cent.

"All eyes are now on RBI policy outcome which takes place tomorrow. It is expected central bank to keep interest rates on hold for a prolonged period starting with its policy meeting on concerns of rising inflation," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

On the currency front, the rupee closed almost flat at 64.38-39 against the US dollar from its previous close at 64.37-38.

Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,470.56 crore while domestic institutional investors bought stocks worth Rs 1,074.39 crore.

Sector-wise, the S&P BSE consumer durables index declined by 131 points, auto index by 130.49 points and metal index by 117.14 points.

On the other hand, the S&P BSE banking index surged by 108.78 points, oil and gas index was up 24.91 points and energy index by 23.70 points.

Vinod Nair, Head of Research, Geojit Financial Services, said: "After a subdued trade, the market reversed from day's low led by banking stocks. The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation."

Major Sensex gainers on Tuesday were: State Bank of India, up 1.92 per cent at Rs 319.30; Bharti Airtel, up 1.18 per cent at Rs 490.50; Reliance Industries, up 1.11 per cent at Rs 911.50; Sun Pharma, up 0.52 per cent at Rs 523.65; and ICICI Bank, up 0.38 per cent at Rs 305.40.

Major Sensex losers were: Hero MotoCorp, down 2.31 per cent at Rs 3,522.15; Wipro, down 2.29 per cent at Rs 283.40; Tata Steel, down 1.71 per cent at Rs 675.95; NTPC, down 1.70 per cent at Rs 176.75; and Dr. Reddy's Lab, down 1.61 per cent at Rs 2,205.

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Update: 05-December-2017

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