Sensex ends flat ahead of RBI meet, dip in RIL; up 13 points

In dull trade, the Bombay Stock Exchange (BSE) Sensex ended on a flat note, up just about 13 points to 16,751.73, ahead of RBI monetary policy review and sell-off in heavyweight RIL on account of dip in its third quarter profits.

Globally, most of the Asian markets were closed while European equities showed a mixed trend offering little direction to investors.

Despite RIL's plans to buyback shares worth up to Rs10,440 crore, its stock fell 2.82%. The Sensex heavyweight posted late on Friday a 13.6% dip in Q3 profits.

However, gains by ICICI Bank, Bharti Airtel, ITC, HUL, Infosys, BHEL, HDFC and L&T helped the BSE 30-share Sensex close in the green. Besides, despite a dip in its Q3 net, Maruti gained nearly 6%.

Sensex moved in a narrow range throughout the session before settling at 16,751.73, up 12.72 points or 0.08%.

The NSE broader 50-issue Nifty, however, ended lower by 2.35 points or 0.05% at 5,046.25.

"The markets acted clueless and lacklustre before the RBI policy meeting tomorrow. The bulls which were highly active until the previous session, could not take the markets higher today. At the same time, the bears could not pull down markets to make a new low," said Milan Bavishi Research, head, Inventure Growth and Securities.

Shanu Goel, research analyst, Bonanza Portfolio said, "Interest rate sensitive banking stocks rose ahead of monetary policy tomorrow on expectations of CRR cut and cut in interest rates in the coming months to prop up slowing economy.

"This week will be eventful as well as volatile with RBI policy tomorrow, and F&O expiry (of derivative contracts) on Wednesday will provide the next trigger for the market."

FIIs, major market movers, have continued to be net buyers for 15 straight sessions and they picked up equities worth Rs997.30 crore last Friday, as per Sebi data. They have pumped in over Rs7,100 crore this month.

Overall, 18 of the 30 Sensex stocks closed in the green, 11 ended in the red and Tata Motors was steady.

Maruti Suzuki was the top gainer - up 5.77%, followed by Bharti (3.03%), BHEL (2.69%), DLF (2.50%), ICICI (1.80%), Cipla (1.55%), ITC (1.44%), HUL (1.10%), HDFC (0.77%) and Infosys (0.63%).

However, Sterlite dipped 5.36%, Hindalco - 4.29%, Hero MotoCo - 4.11%, Coal India - 2.73%, Tata Steel -2.27%, Sun Pharma - 1.37% and HDFC Bank - 0.98%.

From the sectoral indices, BSE-FMCG rose 0.83%, Realty - 0.82% and Teck - 0.81%, while Metal dropped by 2.06% and Oil&Gas by 1.66%.

The total market breadth on the BSE was positive as 1,451 stocks closed with gains, while 1,334 ended with losses. The total turnover dipped to Rs2,159.90 crore from Rs2,948.20 crore on last Friday.