MUMBAI: Benchmark indices Sensex and Nifty declined in early trade on Wednesday after two days of rally amid a spike in crude oil prices and caution ahead of the Reserve Bank of India’s monetary policy decision.
The 30-share BSE Sensex fell 460 points to 72,599.05 in early trade. The 50-share NSE Nifty declined 164.80 points to 22,610.85.
Among the 30 Sensex firms, Titan, Asian Paints, Bharat Electronics, Maruti, Axis Bank and Mahindra & Mahindra were among the laggards.
Bajaj Finance and Bharti Airtel were the gainers.
Brent crude, the global oil benchmark, traded 1.01 per cent higher at USD 101.6 per barrel.
“Brent crude is back above USD 101 and there are no signs of any reversal in FPI outflows. Domestic liquidity and expectations of good Q2 numbers are supporting the market. The focus of the market today will be on the monetary stance and the message from the RBI Governor,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,961.30 crore on Tuesday, according to exchange data.
Reserve Bank Governor Sanjay Malhotra will announce the rate decision at 10 am on Wednesday after the conclusion of the three-day meeting of the Monetary Policy Committee.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Hang Seng index quoted lower.
US markets ended higher on Tuesday.
“Geopolitical risks remain elevated, while crude oil prices have rebounded modestly from recent lows. WTI crude is trading near USD 90 a barrel, while Brent remains above USD 100. The Reserve Bank of India’s Monetary Policy Committee decision due later today is likely to be the key domestic catalyst,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Tuesday, the Sensex jumped 685.34 points, or 0.95 per cent, to settle at 73,067.81. The Nifty climbed 220.35 points, or 0.98 per cent, to end at 22,776.10.
