Sensex pares gains, turns choppy ahead of RBI policy outcome

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Mumbai, Aug 1 :Benchmark indices pared early gains to retreat from life-time highs scaled in morning trade amid buying in oil and gas, energy, telecom, healthcare, capital goods, IT and teck sectors ahead of the key RBI bi-monthly policy decision due later today.

Caution crept as investors eagerly await the central bank’s policy decision on repo rate on the backdrop of volatility in crude oil and food prices as well as inflationary concerns.

Auto, realty, power, banks and financial stocks saw profit-booking.

The 30-share index was trading higher at 37,623.54, showing a gain of 16.96 points, or 0.05 per cent, at 1050 hrs.

Earlier the Sensex marked a life-time high of 37,711.87.

The broader Nifty50 index was trading higher at 11,374.75, up 18.25 points, or 0.16 per cent.

Major gainers were TCS, ONGC, Sun Pharma, Vedanta and Bharti Airtel.

Losers include Tata Motors DVR, Tata Motors, Maruti, Axis Bank and Infosys.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 572.21 crore on a net basis, while domestic institutional investors (DIIs) sold equities to the tune of Rs 290.87 crore yesterday, provisional data showed.

Most Asian markets trading higher, taking cues from the positive session seen in the US market following news that the US and China may restart official talks about their months-long trade dispute.

US stocks closed higher yesterday, as investors continued to digest an onslaught of quarterly earnings reports, with the vast majority beating expectations. But headline news on trade continued to drive markets.