Sensex ends lower ahead of RBI policy call

It finally closed at 32,869.72, up 36.78 points, or 0.11 per cent.

The broader NSE Nifty too slipped by 9.50 points, or 0.09%, to end at 10,118.25, after moving between 10,069.10 and 10,147.95.

The BSE market breadth was bearish - 1,639 declines and 986 advances.

"Negative global cues and local service sector survey data for November weighed on the market sentiments". MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.9 percent.

The gauge had tanked 891.50 points in the previous four sessions as upbeat second quarter GDP numbers failed to dispel concerns over a widening fiscal deficit.

RBI on Wednesday kept the policy rate unchanged at 6 per cent on expected lines but raised the inflation forecast for remainder of the current financial year to 4.3-4.7 per cent.

On the currency front, the rupee closed nearly flat at 64.38-39 against the United States dollar from its previous close at 64.37-38. On the other hand, IT index was up 0.08 per cent, consumer durables 0.07 per cent and realty 0.06 per cent. Analysts believe that investors are more cautious ahead of the RBI decision, guarding against another downturn like the one last week which saw Sensex losing more than 700 points in a couple of days.

"The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation".

Biggest losers in the 30-share index were Hero Motocorp (2.31%), Wipro (2.29%), Tata Steel (1.71%), NTPC (1.70%), Dr Reddy'S Laboratories (1.61%), and Oil & Natural Gas Corporation (1.52%). The US Dow Jones Industrial Average ended 0.45 per cent lower yesterday.

Vanessa Coleman

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