Sensex Slumps 111 Points to 32690, Nifty at 10070

Indian markets were not entirely happy with the Reserve Bank of India (RBI) decision of maintaining status quo in the fifth bi-monthly monetary policy.

However, value-buying in several heavyweights towards the fag-end trimmed the losses, with the index finishing at 32,802.44, down 67.28 points or 0.20%. Benchmark Sensex was down by over 72 points or 0.22% to 32,730.30 while the wider Nifty was down by over 36 points or 0.36% to 10,081.50 during early morning trade on Wednesday.

About two shares declined for every share rising on the BSE.

The Dow Jones Industrial Average lost 0.45 per cent to end at 24,180.64 points, while the S&P 500 ended down 0.37 per cent at 2,629.57.

MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.2 per cent.

"All eyes are now on RBI policy outcome which takes place tomorrow". Brokers said sentiment remained somewhat subdued as investors kept their positions at a low ebb amid expectation that the central bank may keep rates unchanged.

Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,470.56 crore while domestic institutional investors bought stocks worth Rs 1,074.39 crore. On the other hand, IT index was up 0.08 per cent, consumer durables 0.07 per cent and realty 0.06 per cent.

The benchmark BSE Sensex was trading down by almost 100 points as traders adopted a cautious approach ahead of RBI monetary policy outcome later today.

"The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation". United States stock ended lower yesterday, driven by losses in utilities, telecoms and industrials sectors.

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