Stocks open report: The BSE benchmark Sensex declined by nearly 80 points in early trade today as funds and retail investors booked profits,a day of ahead of RBI monetary policy review.
The 30-share BSE index,which had gained over 287 points in the previous two sessions,declined by 79.69 points,or 0.47 per cent,to 16,659.32.
In a similar fashion,the wide-based National Stock Exchange Nifty index shed 27.25 points,or 0.53 per cent,to 5,021.35
Brokers said investors were cautious ahead of tomorrow’s monetary credit policy and booked profits after recent gains.
Besides,13.6 per cent dip in third quarter earnings announced late last week by Reliance Industries Ltd (RIL),which has the heaviest weight on the BSE 30-scrip Sensex,also had some impact on the market,they said.
Stocks of Reliance Industries fell by 3.39 per cent to Rs 766.45.
Meanwhile,in the Asia region,Japan’s Nikkei Index down by 0.14 per cent in early trade.
PREOPEN: Sensex seen higher; Reliance may drop
Banks are expected to help Indian shares rise on Monday on hopes the central bank may signal an easing monetary policy at its review on Tuesday.
Energy major Reliance Industries could drop after the company reported its first quarterly drop in profit in more than two years late on Friday.
I expect the market to remain mildly positive,mainly because bank stocks have a strong weightage. But Reliance is likely to spoil the party,said SP Tulsian,an independent market analyst.
Economists said the Reserve Bank of India would not cut interest rates at the review,but they nearly unanimously expected the central bank to do so by the end of June.
Asian markets paused from last week’s rally,with Greece yet to strike a crucial debt swap deal to avoid a default,and activity was subdued due to the Lunar New Year holiday in most of south east Asia.
By 0247 GMT,the MSCI’s broadest index of Asia Pacific shares outside Japan was down 0.04 per cent,while Japan’s Nikkei was up 0.2 per cent.
The Nifty India stock futures in Singapore were little changed.
The 30-share BSE index rose 0.6 per cent on Friday to 16,739.01,its highest close since Dec. 7.
STOCKS TO WATCH
* Godrej Consumer Products Ltd is expected to open higher after Singapore’s Temasek said it would invest $136 million in the Indian company.
* Oberoi Realty is likely to drop after the real estate firm reported a 50 per cent drop in December quarter net profit.
* JSW Energy may open lower after the power producer said it swung to a net loss in the December quarter.
* United Spirits is expected to fall after the Vijay Mallya-controlled liquor maker said quarterly profit slumped 64 per cent.
FACTORS TO WATCH
* Euro wobbles on Greek setback; subdued in holiday trade
* Oil falls on economic,demand concerns
* Markets pause on caution as Greece debt talk eyed
* Dow and S&P 500 post best week since Christmas