Sensex, Nifty log first drop in 4 sessions ahead of RBI policy

Mumbai: Stocks fell for the first time in four sessions today with benchmark Sensex slipping 134.37 points to 28,559.62 and Nifty dipping 32.35 points to 8,555.90 on caution ahead of RBI policy review and weak global cues.

Oil and gas stocks were the biggest laggards after global crude prices hit a five-year low. Power, metal and capital goods shares also witnessed sharp selling.

Consumer durable stocks spurted on good buying. Auto shares saw some activity after release of monthly sales. The BSE Sensex, after rising to the day's high of 28,809.64 on the back of initial buying, declined to 28,538.44 on profit-booking. It ended at 28,559.62, logging a fall of 134.37 points or 0.47 per cent. In the previous three sessions, the gauge had rallied over 355 points.

On Friday, it had zoomed to intra-day record high of 28,822.37 and ended at record close of 28,693.99.

Among 30-share Sensex, stocks like ONGC, Hindalco, BHEL, RIL, Tata Power, Tata Steel, M&M and Sesa Sterlite ended down. The 50-share NSE Nifty opened at 8,605.10 and hit a fresh high of 8,623.00 before closing at 8,555.90, down 32.35 points of 0.38 per cent.

"Participants preferred to sit on sidelines and booked some profit ahead of RBI's monetary policy review scheduled for Tuesday," said Jayant Manglik, President-retail distribution, Religare Securities.

After first quarter GDP grew at 5.3 per cent in September quarter, an HSBC survey showed manufacturing sector output accelerated in November at the quickest pace in 2 years.

In broader markets, airline shares zoomed after prices of jet fuel (ATF) were cut by 4.1 per cent. Jewellery stocks, including Gitanjali Gems and Titan Company, shined after RBI withdrew 80-20 rule and restrictions on import of gold.

Globally, a mixed closing at Asian markets and a lower opening in European markets also influenced trading here. Sector wise, BSE Oil & Gas index suffered the most by falling 2.57 per cent, Power (2.2 percent), Metal (2.14 per cent), Capital Goods (1.37 percent) and Realty (0.62 percent).

However, Consumer Durables index rose 3.31 per cent, IT index by 0.84 per cent and Auto index by 0.33 per cent.

Meanwhile, the provisional data released by stock exchanges showed that Foreign Portfolio Investors bought shares worth a net Rs 935.86 crore on Friday.