Nifty50 slips below 12,000 mark ahead of RBI policy decision; bank stocks slip

NEW DELHI: Domestic markets started on a cautious note on Thursday, with benchmark index Nifty slipping below the 12,000-mark ahead of RBI monetary policy outcome. The sentiment soured on the back of weak global cues.

Bank and financial stocks were the major index drags.

Global markets were weak as Asian shares got off to a hesitant start on Thursday as investors feared a looming US trade war with Mexico would further depress global growth. Japan's Nikkei dithered either side of flat, while E-Mini futures for the S&P 500 eased 0.1 per cent.

The rupee too opened on a weak note. It depreciated by 13 paise to 69.38 against the US dollar.

Oil prices were at over 4-month low on rising US supply and demand fears and failed to lift Street mood.

At around 9:30 am, the 30-pack Sensex traded 28 points or 0.07 per cent down at 40,055. NSE Nifty lost 25 points or 0.21 per cent to 11,997.

Shares of Dewan Housing Finance Corporation (DHFL) plunged as much as 15 per cent to Rs 94.90 in early deals on Thursday after many rating agencies downgraded the commercial papers (CP) issued by the debt-laden company to default.

Among Nifty stocks, 23 advanced while 27 declined. Meanwhile, in the Sensex pack, 14 stocks were in the black and 16 in the red.

Power Grid was the biggest Sensex gainer, up around 1.61 per cent. Other gainers were -- HUL, Bajaj Auto, Coal India, HDFC Bank and Asian Paints.

YES Bank, on the other hand, shed the most followed by SBI, IndusInd Bank, Bharti Airtel, M&M and HeroMoto Corp.

BSE Midcap and BSE Smallcap logged losses, falling down 0.50 per cent and 0.38 per cent respectively.

In the sectoral space, barring consumer durables and power all sectors were in the red. BSE Utilities was the biggest loser, down 1.26 per cent.

Meanwhile, analysts said RBI is all set to cut the policy rate by 25 basis points. “The MPC in its last meeting has stated that the price stability has been achieved and has shifted focus to growth. With inflation continuing to provide room and output gap opening up further, there is a compelling case for rate cut,” Edelweiss said in a note.