Prior to the RBI Policy Review and US Inflation Data, the markets decline

The publication of US inflation statistics later this week and the Reserve Bank of India’s (RBI) review of its monetary policy caused investors to be cautious on Tuesday, which resulted in a fall in benchmark stock indexes. The situation was made worse by ongoing outflows of foreign money and a slowdown in both the Asian and European markets, which had a detrimental effect on the mood of the home market.

The 30-share BSE Sensex fell by 106.98 points, or 0.16 percent, to settle at 65,846.50. It dropped 200.85 points, or 0.30 percent, throughout the course of the trading day, hitting 65,752.63 in total. Similary impacted, the NSE Nifty fell 26.45 points (0.13 percent) to end at 19,570.85.

 

The high-powered rate-setting panel MPC, led by RBI Governor Shaktikanta Das, began its three-day meeting on Tuesday to discuss the specifics of the forthcoming bimonthly policy, with expectations tending towards a status quo in the main interest rates. Governor Das will preside over the announcement of the Monetary Policy Committee’s (MPC) decision on Thursday, August 10.

 

Several well-known equities, including Power Grid, Mahindra & Mahindra, JSW Steel, HCL Technologies, Sun Pharma, Nestle, IndusInd Bank, Reliance Industries, Bharti Airtel, and ITC, were major losers among the Sensex’s component companies. In contrast, big gainers were Tech Mahindra, Wipro, Bajaj Finance, State Bank of India, Bajaj Finserv, Axis Bank, Titan, and ICICI Bank.

 

The performance of Asian markets varied, with Tokyo’s market ending on a strong note while Seoul, Shanghai, and Hong Kong saw drops. While US markets ended the previous Monday in positive territory, European markets showed negative tendencies.

 

Benchmark Brent crude for all crude oil fell 1.38 percent to USD 84.16 a barrel.

 

According to information from exchanges, foreign institutional investors (FIIs) sold shares of stock worth Rs. 1,892.77 crore on Monday. The BSE benchmark rose 232.23 points, or 0.35 percent, during the previous session to end at 65,953.48. The Nifty also increased by 80.30 points, or 0.41 percent, before coming to an end at 19,597.30.