Mumbai : The market ended on a flattish note with negative bias ahead of the RBI monetary policy review on Tuesday. The Nifty touched 7600 intraday and traded down with 7.60 points or 0.1 percent at 7555.95.
Sensex on the other hand slipped 45.86 points or 0.2 percent at 24824.83. The Reserve Bank of India is unlikely to take any interest rate action at the monetary policy meeting tomorrow.
The intentions of the RBI have factored in a no-action policy from RBI chief Raghuram Rajan at the bi-monthly meet. The RBI is also likely to maintain the word ‘accommodative policy’ in its monetary policy statement.
Bank Nifty ended 1.3 percent lower, while SBI slipped four percent. Worried about State Bank of India’s bad loan Morgan Stanley has reduced target price to Rs. 115 per share, implying 36 percent downside.
It has also cut earnings per share (EPS) by 28-35 percent. The brokerage feels that average return on equity (ROE) of seven percent (first half of FY16-FY17) and high capital will keep stocks under pressure.
ICICI Bank, Axis Bank and HUL were other losers in the Sensex.
Among the gainers were Adani Ports, Coal India, Bharti Airtel, Cipla and L and T. (ANI)