Nifty, Sensex in no-man’s land ahead of RBI’s rate cut decision – Monday closing report
Nifty has to close above 7,850 for any uptrend
We had mentioned in Thursday’s closing report that Nifty, Sensex may struggle to go up and that Nifty may find support at around 7,750. With investor sentiments turning bearish a day ahead of the fourth bi-monthly monetary policy review of the Reserve Bank of India (RBI), the major indices in the Indian stock markets closed with losses after being range-bound through the day.
The Indian equity markets opened on a lower note on Monday, following a sharp downward revision of Chinese industrial profits. Observers pointed out that negative Asian market cues coupled with anxiety over the upcoming monetary policy review subdued Indian markets. The markets were dragged down by the uncertainty over the RBI's rate cut decision. The apex bank will conduct its fourth bi-monthly monetary policy review on September 29.
Sector-wise, automobile, capital goods, metal, information technology (IT) and banking stocks came under heavy selling pressure. However, consumer durables, healthcare and realty sectors supported the markets.
The S&P BSE automobile index plunged by 318.95 points, capital goods index was down by 286.64 points, metal index declined by 196.20 points, IT index was lower by 131.15 points, and banking index fell by 91.26 points.
Sector-wise, automobile, metal, capital goods, information technology (IT) and technology, entertainment and media (TECK) came under heavy selling pressure.
However, the S&P BSE consumer durables index rose by 284.68 points, healthcare index gained 21.77 points and realty index rose by 16.11 points.
Notwithstanding the clarification on minimum alternative tax (MAT), as well as Silicon Valley’s positive response to Prime Minister Narendra Modi’s pitch on "Digital India", the market closed weak, near the low of the day.
The top gainers and top losers of major indices of the stock market are given in the table below:
The closing values of the major Asian indices are given in the table below:
The European markets were trading weak (down 1.5%-2%) and S&P premarket futures were down by about 0.5%.