Nifty in red; metals, realty, capital goods down

MUMBAI: The National Stock Exchange's Nifty was witnessing a profit booking session in line with global peers as wary traders chose to remain on sidelines ahead of Reserve Bank of India's policy review meet today.

The meet is expected to be a non-event as the central bank may maintain status quo on interest rates. It has already cut cash reserve ratio by 75 basis points last week.

Meanwhile, Trinamool Congress chief Mamata Banerjee has kicked up a political storm by asking the Prime Minister to sack Railways Minister Dinesh Trivedi, who is from her own party, after the minister hiked passenger fares.

Lack of economic reforms and political uncertainty can affect inflows from foreign institutional investors into the Indian markets.

"The market has an important event to contend with today - the RBI policy review. Here again, the element of suspense will ensure a nervous start. Global markets too seem to be consolidating after this week's stellar rally.

All eyes will be on Mint Street - RBI's headquarters. Whether the central bank does the unthinkable by cutting repo rate or opts for status quo is anybody's guess. The Economic Survey will be presented to Parliament today with a host of ideal suggestions which never get implemented.

Another big event is lined up for Friday. The market is looking up to the Union Budget to not only give a fillip to the economy but also provide direction in the medium term," said IIFL report.

At 10:00 am; the Nifty was at 5439.65, down 24.25 points or 0.44 per cent. The broader index touched a high of 5462.50 and low of 5427.80 in trade so far.

The Bombay Stock Exchange's Sensex was at 17854.74, down 64.56 points or 0.36 per cent. It touched intraday high of 17918.25 and low of 17814.67.

BSE Midcap Index down 0.46 per cent and BSE Smallcap Index moved 0.27 per cent lower.

Amongst the sectoral indices, BSE Metal Index moved 1.58 per cent lower, BSE Realty Index declined 1.14 per cent, BSE Capital Goods Index was down 0.94 per cent. BSE IT moved 0.44 per cent higher.

Reliance Communications (-3.03%), Reliance Power (-2.72%), Coal India (-2.49%), Jaiprakash Associates (-2.22%) and Reliance Infrastructure (-2.05%) were amongst the Nifty losers.

Tata Consultancy Services (1.34%), GAIL (0.81%), Hindustan Unilever (0.77%), Ambuja Cement (0.69%) and Dr Reddy's Laboratories (0.54%) were the major gainers.

Market breadth was positive on the NSE with 484 gainers against 869 losers.



Meanwhile, the Asian markets were also down on profit booking. Shanghai Composite slipped 0.12 per cent higher, Taiwan Weighted edged 0.15 per cent lower and Seoul Composite declined 0.15 per cent. Nikkei 225 was up 0.70 per cent.