Sensex trades flat ahead of Reserve Bank of India’s monetary policy review

Mumbai, June 3 : A benchmark index of Indian equities markets was trading flat in early morning session Tuesday just ahead of the Reserve Bank of India’s (RBI) monetary policy review. Healthy buying was observed in interest sensitive stocks like metal, capital goods, consumer durables and automobile sectors.  However, bank and fast moving consumer goods (FMCG) stocks came under sustained selling pressure.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 24,729.22 points, was trading at 24,726.35 points around 10.30 p.m. session, up 41.50 points or 0.17 percent from the previous day’s close at 24,684.85 points. The Sensex touched a high of 24,781.39 points and a low of 24,692.06 points in trade. The S&P BSE metal index gained 260.83 points, followed by capital goods index which was up 131.81 points, consumer durables index increased by 86.54 points and automobile index surged 43.68 points.

However, FMCG index dropped by 47.21 points and bank index was lower by 41.22 points. The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading flat – up 7.55 points or 0.10 percent at 7,370.05 points. The caution in the market came ahead of the RBI’s monetary policy review. On Monday, the benchmark index closed 467.51 points or 1.93 percent up on positive global cues and expectations that stable interest rates will be maintained or lowered to spur economic growth.