Post Session: Sensex ends lower ahead of RBI policy review Analysis for Sep 28, 2015

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Amidst choppy trade, the Indian equities ended lower on Monday, snapping two-day gain, tracking bearish cues from most markets across Asia as heightened concerns over China sour the lure for risky assets. The traders stick to a cautious approach ahead of the much anticipated RBI policy rate decision on Tuesday in the which the central bank may undertake a fourth interest rate cut this year.

The 30-share BSE SENSEX closed at 25616.84, down by 246.66 points or by 0.95 per cent and the NSE Nifty ended 72.8 points lower at 7795.7.

In the choppy trade, the BSE Sensex touched intraday high of 25936.89 and intraday low of 25593.56, while the NSE Nifty touched high and low of 7893.95 and 7787.95, respectively.

In line with the benchmark indices, the broader market also ended lower, with the BSE MIDCAP settling at 10573.12, down by 24.75 points or by 0.23 per cent, while the BSE SMLCAP closed quoting at 10916.07, down by 26.07 points or by 0.24 per cent.

Investors expect that the central bank which has slashed borrowing costs by an overall 75 basis points is likely to undertake another 25 basis points reduction in the repo rate tomorrow as softening consumer inflation offers more room to the apex bank to bolster monetary easing to help prop up growth in Asia"s third biggest economy.

On the sectoral front, metal and auto indices emerged as top losers, eroding 2.6 per cent and 1.74 per cent, respectively.

Leading the decline on BSE Sensex pack were Tata Motors Ltd. (Rs. 285.25,-6.06%), Vedanta Ltd. (Rs. 91.20,-4.40%), Sun Pharmaceutical Industries Ltd. (Rs. 860.80,-3.42%), Infosys Ltd. (Rs. 1108.20,-2.91%), Coal India Ltd. (Rs. 309.65,-2.81%), among others.

Meanwhile, Dr. Reddy's Laboratories Ltd. (Rs. 4185.00,+5.37%), Lupin Ltd. (Rs. 2033.50,+2.21%), Hindustan Unilever Ltd. (Rs. 792.60,+1.43%), Tata Consultancy Services Ltd. (Rs. 2590.35,+0.57%), State Bank of India (Rs. 239.55,+0.17%), were among top gainers on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2773, shares advanced were 1106 while 1547 shares declined and 120 were unchanged.

On the global front, the Asian equities ended on mixed note as investors turned cautious with data from the world's second largest economy in focus. Shanghai Composite and Hang Seng ended higher paring some of early losses, while Japanese shares, which declined nearly 2 per cent on Friday, ended in negative terrain as a stronger yen curbed the appeal of exporter stocks.

Story first published: Monday, September 28, 2015, 17:12 [IST]
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