Sensex sheds 138 pts; dips below 19k

The Sensex closed below the 19,000 mark as investors remained cautious ahead of RBI meeting.

The BSE Sensex slid below the 19k mark,lowest in over a month on Monday,losing 138 points as investors remained apprehensive of another round of hike in key rates on Tuesday by RBI in a bid to tame inflation.

Investors chose to ignore positives like rise in core infrastructure growth and exports as well as an upward trend in Asian markets,analysts said.

Banking,consumer durables and PSU stocks lost the most ahead of the annual monetary policy review meeting of the Reserve Bank of India RBI.

FIIs continued to sell and as per the provisional data,they sold shares worth Rs 689.89 crore last Friday.

The 30-share Bombay Stock Exchange index,Sensex,resumed higher at 19,224.05 and moved between 19,253.87 and 18,954.76 before ending the day at 18,998.02 8212; down 137.94 points or 0.72 per cent from its last weekend8217;s level.

The NSE8217;s 50-share Nifty index also finished lower by 48.20 points or 0.84 per cent to 5,701.30.

Asian stocks ended up after US President Barack Obama announced that al-Qaeda terrorist leader Osama bin Laden has been killed by American troops in Pakistan.

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Key indices in South Korea and Japan rose by 1.67 per cent and 1.57 per cent. Markets in China,Hong Kong,Singapore and Taiwan were closed for a local holiday.

8220;Fear of hike in key policy rates by RBI tomorrow pulled down the market,although global markets continued their north-bound journey,8221; Motilal Oswal Securities Senior Analyst Equities Parag Doctor said.

Meanwhile,IIFL Head of Research India Private Clients Amar Ambani said,8221;The Indian market did not benefit from the news that US troops have killed Osama Bin Laden in Pakistan.

8220;It also chose to ignore largely positive economic reports on trade data,manufacturing PMI and core sector growth. Traders and investors were nervous ahead of RBI8217;s policy announcement on Tuesday.8221;

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European markets were also up,tracking gains in Asia and in Wall Street futures trade.

Key indices in France and Germany rose by 0.28 per cent and 0.93 per cent. London stock market remained closed.

Among major indices,Bankex fell by 2.08 pc,BSE-Consumer Durables 1.76 pc,Oil amp; Gas 1.34 pc,PSU 1.15 pc,Metal 1.04 pc and Auto 1.02 pc.

However,BSE-Realty index shot up 1.14 per cent. Major losers from the Sensex pack were SBI 4.06 pc,Maruti Suzuki 2.37 pc,Sterlite Ind 2.26 pc,Bajaj Auto 2.09 pc,RIL 1.76 pc,Mamp;M 1.70 pc,ONGC 1.47 pc,ICICI Bank 1.44 pc,Hind Unilever 1.42 pc,Jindal Steel 1.12 pc,Hero Honda 1.03 pc and Hindalco Ind 1 pc.

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However,Tata Power shot up 2.43 per cent,followed by Cipla 1.96 pc,DLF 1.66 pc and Bharti Airtel 1.36 pc.

The total market breadth continued to remain weak as 1,810 counters closed in the red,while 1,032 stocks finished in the green on the BSE.

The total turnover declined to Rs 2,421.42 crore from the last weekend8217;s level of Rs 3,000.76 crore.