Sensex Down by 110 Points to 32759, Nifty at 10096

Sensex Nifty plunge after RBI maintains key lending rates

Sensex Nifty plunge after RBI maintains key lending rates

Mumbai: Markets turned weak in a choppy trade on Tuesday as cautious investors kept their powder dry ahead of the Reserve Bank of India's (RBI) policy announcement amid subdued macro cues.

Trading was highly volatile throughout the day ahead of RBI's monetary policy review and Gujarat elections later this week.

The BSE Sensex settled 67.28 points, or 0.20 per cent, down at 32,802.44, while NSE Nifty index closed 9.50 points, or 0.09 per cent, down at 10,118.25.

On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) inched up 5.95 points or 0.06 per cent to 10,127.75 points.

However, buying in media, energy, banking and financials sectors capped the losses. The broad based Nifty traded near 1-month low.

The BSE market breadth was bearish - 1,604 declines and 1,088 advances. Although the central bank is widely expected to keep rates on hold, investors will watch for any hints of a cut at the February meeting in its statement.

On the currency front, the rupee closed nearly flat at 64.38-39 against the USA dollar from its previous close at 64.37-38. This has led to selling by investors, which added to the negative mood. "The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation".

On the other hand, Coal India (2.09%), Asian Paints (1.02%), Sun Pharmaceutical Industries (0.95%), Reliance Industries (0.92%), Maruti Suzuki India (0.91%), and NTPC (0.75%) were the major losers in the Sensex.

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