Sensex, Nifty turn choppy ahead of RBI meet; Airtel cracks 4%

Benchmark indices started on a choppy note Tuesday as investors turned cautious amid selling by domestic and foreign funds ahead of RBI’s monetary policy review.

The 30-share index was trading 42.81 points, or 0.12 per cent, lower at 36,539.93.

Similarly, the 50-share NSE Nifty fell 16.45 points, or 0.15 per cent, to 10,895.80.

On Monday, however, the Sensex ended 113.31 points, or 0.31 per cent, higher at 36,582.74. The index posted gains for a third straight day; the NSE Nifty also edged higher by 18.60 points, or 0.17 %, to close at 10,912.25.

Investors are cautious ahead of the rate-setting 3-day policy review meeting of the Reserve Bank of India, scheduled to begin later in the day, traders said.

In morning session on Tuesday, Bharti Airtel was the biggest loser in the Sensex pack, cracking nearly 4 %, on reports that Moody’s downgraded the company’s rating by one notch to Ba1 from Baa3, marking the first time an international rating agency has downgraded the stock.

Other losers include Tata Motors, HDFC, ICICI Bank, TCS, Infosys, Tata Steel and HDFC Bank, falling up to 0.83 per cent.

Meanwhile, Hero MotoCorp, Bajaj Finance, M&M, IndusInd Bank, Bajaj Auto and SBI were the top gainers, rising up to 1 %.

“After the consolidation and time correction in the Indian markets, valuations are reasonable at 17-18 times one year forward earnings, given the expectations of a strong recovery in earnings. Global uncertainty and the election-related volatility are key near-term risks in the market,” said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.

On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of ₹112.13 crore Monday, and domestic institutional investors (DIIs) were net sellers to the tune of ₹65.22 crore, provisional data available with BSE showed.

Elsewhere in Asia, Japan’s Nikkei slipped 0.02 %. Bourses in China, South Korea, Singapore and Indonesia remained closed for the Lunar New Year.

On Wall Street, Dow Jones Industrial Average ended 0.70 % higher on Monday.

The rupee, meanwhile, rebounded 7 paise against $ to 71.73.

The benchmark Brent crude futures rose 0.40 % to $62.76 per barrel.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)