Pedestrians walk past the Bombay Stock Exchange (BSE) in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Sensex, Nifty Fall For Third Day Ahead Of RBI Policy Decision

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Indian equity benchmarks fell for third day in a row ahead of Reserve Bank of India's monetary policy decision which is due tomorrow.

The S&P BSE Sensex fell 0.31 percent or 109 points to 34,903 and the NSE Nifty 50 index declined 0.33 percent or 35 points to 10,593.

The market has been falling on expectation of a 25-basis points rate hike by the Reserve Bank of India in the backdrop of rising crude to keep inflation under check, AK Prabhakar, head of research at IDBI Capital told BloombergQuint over phone.

Seventeen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Telecom index's over 3 percent drop. On the flipside, the S&P BSE Energy index was top gainer, up 0.25 percent.

The mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap index fell 1.2 percent and the S&P BSE SmallCap index plunged 2.4 percent.

Rising interest rates, currency headwinds and rising commodity prices don’t augur well for mid- and small-cap companies.
AK Prabhakar, head of research, IDBI Capital

Many mid- and small-cap stocks have given four to fivefold returns in the last five years and their valuations are not sustainable, he said. The kind of growth required to justify these valuations won’t come through and a correction had to happen as they were trading at a premium to large caps, he said.

Sensex, Nifty Fall For Third Day Ahead Of RBI Policy Decision

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Idea Cellular Slumps Over 10%; Trading Volume Doubles

Shares of the country's third largest wireless carrier slumped as much as 12 percent on the back of heavy volumes.

Trading volume was double its 20-day average at this time of the day.

Sensex, Nifty Fall For Third Day Ahead Of RBI Policy Decision

Stocks Moving On Heavy Volumes

  • Whirlpool of India: The Haryana-based washing machine and air conditioner maker fell 1.2 percent to Rs 1,536. Trading volume was 13.9 times its 20-day average.
  • Brigade Enterprises: The Bengaluru-based real estate developer fell 2.5 percent to Rs 229. Trading volume was 9.4 times its 20-day average.
  • Star Cement: The Kolkata-based cement maker fell 4.2 percent to Rs 124.50. Trading volume was 9.7 times its 20-day average.
  • Unichem Labs: The Mumbai-based drugmaker fell 2.6 percent to Rs 231. Trading volume was 7.4 times its 20 -day average.

IndusInd Bank, Bharat Financial Inclusion Get Exchange Nod For Merger; Shares Rise

IndusInd Bank and Bharat Financial Inclusion rose after NSE and BSE approves the proposed merger between the two companies.

  • IndusInd erased losses; rose as much as 0.8 percent
  • Bharat Financial extended gains to as much as 1.4 percent