The BSE Sensex surrendered early gains to trade over 137 points lower in opening trade as investors remained on the sidelines ahead of RBI’s monetary policy review meeting beginning on Monday. RBI’s second bi-monthly monetary policy meeting of 2018-19 will be held from June 4-6. The 30-share index fell 137.60 points, or 0.39 per cent, to 35,089.66.
Similarly, the NSE Nifty declined by 48 points, or 0.44 per cent, to trade at 10,696.20. Major losers were HDFC Bank, Asian Paints, Adani Ports, TCS, HUL, Power Grid, Wipro and ONGC, falling up to 1.82 per cent.
The rupee advanced by 21 paise to a fresh one-month high of 66.85 against the dollar in early trade on Monday. Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 337.97 crore, while foreign portfolio investors (FPIs) sold equities to the tune of Rs 202.80 crore on Friday, provisional data showed.
Elsewhere in Asia, Hong Kong’s Hang Seng was up 1.33 per cent, while Japan’s Nikkei rose 1.33 per cent in early trade today. Shanghai Composite Index gained 0.17 per cent.
The US Dow Jones Industrial Average ended 0.90 per cent higher in Friday’s trade. Maintaining its uptrend for the fourth straight day, the rupee strengthened by 21 paise to a fresh one-month high of 66.85 against the dollar in early trade on Monday on increased selling of the greenback by exporters and banks.
Participants are also keeping an eye on RBI’s second bi-monthly monetary policy meeting of 2018-19, being held from June 4-6. Forex dealers said a higher opening of the domestic equity market supported the rupee but the dollar’s strength against some currencies overseas after the release of an upbeat US jobs report capped the gains.
On Friday, the rupee had gained 35 paise against the US currency to end at a near one-month high of 67.06 after a flurry of upbeat economic data bolstered confidence in the growth outlook. Meanwhile, the benchmark BSE Sensex was trading sharply higher by 328.33 points, or 0.93 per cent, at 35,555.59 in opening trade.