Mumbai Dec 5 (IANS) Key Indian equity indices recovered from their day s lows to close with marginal losses on Tuesday even as broadly negative global cues along with disappointing services sector data and outflow of foreign funds kept market sentiment subdued.
According to market observers investors traded with caution ahead of the outcome of the Reserve Bank of India s (RBI) two-day policy review meet on Wednesday. However the losses were trimmed by good buying in stocks of banking majors like State Bank of India (SBI) and Kotak Bank and index heavyweights like Reliance Industries.
On a closing basis the wider Nifty50 of the National Stock Exchange (NSE) edged lower by 9.50 points or 0.09 per cent to 10 118.25 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32 802.44 points -- down 67.28 points or 0.20 per cent from Monday s close.
The BSE market breadth was bearish -- 1 549 declines and 1 105 advances.
"Markets ended with marginal losses on Tuesday after a bounce back from the lows of 10 069 curbed the losses. It was a volatile session ahead of the outcome of RBI s MPC (Monetary Policy Committee) meet tomorrow " Deepak Jasani Head Retail Research HDFC Securities told IANS.
"Negative global cues and local service sector survey data for November weighed on the market sentiments. Broad market indices like the BSE mid-cap index ended with gains thereby outperforming the main indices " Jasani added.
Data released during market hours revealed that the Nikkei Services purchasing managers index in November fell to 48.5 points -- the lowest since August -- from 51.7 the previous month.
In the broader markets the S&P BSE mid-cap index closed higher by 0.41 per cent whereas the small-cap index inched down by 0.03 per cent.
"All eyes are now on RBI policy outcome which takes place tomorrow. It is expected central bank to keep interest rates on hold for a prolonged period starting with its policy meeting on concerns of rising inflation " Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.
On the currency front the rupee closed almost flat at 64.38-39 against the US dollar from its previous close at 64.37-38.
Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1 470.56 crore while domestic institutional investors bought stocks worth Rs 1 074.39 crore.
Sector-wise the S&P BSE consumer durables index declined by 131 points auto index by 130.49 points and metal index by 117.14 points.
On the other hand the S&P BSE banking index surged by 108.78 points oil and gas index was up 24.91 points and energy index by 23.70 points.
Vinod Nair Head of Research Geojit Financial Services said: "After a subdued trade the market reversed from day s low led by banking stocks. The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation."
Major Sensex gainers on Tuesday were: State Bank of India up 1.92 per cent at Rs 319.30; Bharti Airtel up 1.18 per cent at Rs 490.50; Reliance Industries up 1.11 per cent at Rs 911.50; Sun Pharma up 0.52 per cent at Rs 523.65; and ICICI Bank up 0.38 per cent at Rs 305.40.
Major Sensex losers were: Hero MotoCorp down 2.31 per cent at Rs 3 522.15; Wipro down 2.29 per cent at Rs 283.40; Tata Steel down 1.71 per cent at Rs 675.95; NTPC down 1.70 per cent at Rs 176.75; and Dr. Reddy s Lab down 1.61 per cent at Rs 2 205.
--IANS
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