Stocks weaken ahead of RBI policy meeting, Sensex and Nifty affected

Mumbai: Domestic equity indices ended the market session slightly lower on Monday as investors exercised caution ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting this week and profit booking in some key stocks.
The Sensex closed at 85,641.90, down 64.77 points or 0.08 per cent. The 30-share index opened with a good gap-up at 86,065.92 compared to the previous session’s close of 85,706.67. However, the index failed to sustain its upward momentum amid cautious investor sentiment.
The Nifty closed at 26,175.75, down 27.20 points or 0.10 per cent.
Analysts said, “After reaching a new high, the market moved in a range as expectations of a rate cut by the RBI in December were dampened by better-than-expected Q2 GDP growth and a sharp depreciation in the rupee.” Sentiment turned cautious due to lower GST collections in November, driven by lower rates.

Meanwhile, the auto index performed well, supported by good sales in November, the GST correction, low inflation, and good demand during the wedding season.
Sensex stocks including Bajaj Finance, Sun Pharma, Trent, Mahindra & Mahindra, SBI, Bharti Airtel, Bajaj Finserv, HDFC Bank, and Axis Bank closed lower. Tata Motors PV, Maruti Suzuki, BEL, Kotak Bank, Adani Ports, HCL Tech, Tech Mahindra, Eternal, and NTPC closed higher.
Sectoral indices fluctuated amid mixed investor sentiment. Nifty FMCG fell 95 points or 0.17%, Nifty Bank slipped 71 points or 0.12%, and Nifty Fin Services fell 75 points or 0.27%. While Nifty Auto rose 218.40 points or 0.25%, and Nifty IT gained 144 points or 0.39%.
The broader market also adopted a cautious approach and Nifty 100, Nifty Midcap 100 closed flat in the session, while Nifty Smallcap 100 rose 45 points or 0.25%.