Markets end modestly higher as RBI policy meet begins

Mumbai, Feb 5 Benchmark equity indices ended marginally higher after a choppy session Tuesday, with speculators to a great extent staying on the sidelines as the RBI's monetary policy review meeting got underway.

Lack of cues from overseas markets also affected the momentum, traders said.

After a subdued opening, the 30-share Sensex finished 34.07 points, or 0.09 percent, higher at 36,616.81. Also, the NSE Nifty edged up 22.10 points, or 0.20 percent, to 10,934.35.

In the Sensex pack, Hero MotoCorp, IndusInd Bank, Bajaj Auto, Maruti and M&M were the best gainers, spurting up to 2.66 percent.

Then again, Tata Motors, Coal India, ONGC, Tata Steel, Yes Bank, Sun Pharma, ITC and ICICI Bank fell up to 2.63 percent.

Investors were awaiting cues from the Reserve Bank of India's monetary policy review, traders said.

The RBI's Monetary Policy Committee (MPC) started its three-day meet Tuesday to settle on key rates in the midst of desires that it would change position to nonpartisan on low swelling but may not cut rates due to fiscal challenges and rising oil prices.

"Market was volatile and faced stiff resistance at 10,950 levels. However, investors got bargaining opportunity in auto and private banks post the January automobile deals and in desire for timid RBI fiscal arrangement," said Vinod Nair, Head of Research, Geojit Financial Services.

More extensive files, in any case, finished in the red, with the BSE Midcap and Smallcap sliding up to 0.91 percent.

Sectorally, realty, metals and FMCG files finished in the red, while auto and financial services finished with gains.

On a net basis, foreign portfolio investors (FPIs) sold offers worth a net of Rs 112.13 crore Monday, and residential institutional speculators (DIIs) were net dealers to the tune of Rs 65.22 crore, temporary information accessible with BSE appeared.

Elsewhere in Asia, Japan's Nikkei slipped 0.19 percent. Bourses in China, South Korea, Singapore and Indonesia remained closed for the Lunar New Year.

In the Eurozone, Frankfurt's DAX was up 0.83 percent, while Paris CAC 40 rose 0.77 percent in late morning bargains. London's FTSE flooded 1.12 percent.

The rupee, meanwhile, bounced back 4 paise against the US dollar to 71.76 intra-day.

The benchmark Brent crude futures rose 0.64 per cent to USD 62.91 per barrel.