Mumbai, Dec 1 (IANS): A benchmark index of the Indian equities markets closed 134.37 points or 0.47 percent down in Monday's trade session.
The markets, which traded cautiously throughout the day's session, ended on a negative note ahead of the Reserve Bank of India's (RBI) fifth bi-monthly monetary policy review to be held here Tuesday.
Expectations are high of a rate cut by the RBI, as recent economic data showed easing of retail and consumer inflation coupled with a down turn in industrial and gross domestic product (GDP) expansion.
"RBI monetary policy and US November jobs report will be key data points," said Anindya Banerjee, analyst at Kotak Securities.
However, the Geojit BNP Paribas' head - fundamental research, Vinod Nair said the RBI's commentary will be important to understand the possibility to cut rate, if not on Dec 2 but by next policy review.
"As we understand RBI is not likely to cut rate but will carry a dovish commentary. It is the requirement of the economy where inflation is likely to lower by crude, commodities and a slowing world. Depending on this event, we will define the momentum in the near term," Nair said.
Expectations of a dovish move by the RBI to cut key lending rates led to a healthy buying in interest sensitive stocks like consumer durables, information technology (IT) and automobile stocks.
However, oil and gas, metal and capital goods scrips came under intense selling pressure.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 28,748.22 points, closed trade at 28,559.62 points, down 134.37 points or 0.47 percent from the previous day's close at 28,693.99 points.
The Sensex touched a high of 28,809.64 points and a low of 28,538.44 points in the intra-trade.
The S&P BSE consumer durables index gained 318.83 points, IT index gained 93.84 points and automobile index was higher by 63.87 points.
However, oil and gas index moved down 280.65 points. Metal index plunged 241.59 points and capital goods index lost 224.97 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed the day's trade in red. It was down 32.35 points or 0.38 percent at 8,555.90 points.
The major Sensex gainers were: Hero MotoCorp, up 3.69 percent at Rs.3,258.25; Hindustan Unilever, up 2.75 percent at Rs.808.25; Tata Consultancy Services (TCS), up 1.89 percent at Rs.2,693.15; Axis Bank, up 1.73 percent at Rs.489.35; and Maruti, up 1.61 percent at Rs.3,389.65.
The major Sensex losers were: ONGC, down 3.98 percent at Rs.364.40; Hindalco Inds, down 3.85 percent at Rs.167.20; BHEL, down 3.25 percent at Rs.274; Reliance Inds, down 2.94 percent at Rs.961.75; and Tata Power, down 2.74 percent at Rs.90.45.
Among other Asian markets, Japan's Nikkei index was up 0.75 percent, Shanghai's Composite Index was lower 0.08 percent, and Hong Kong's Hang Seng lost 2.58 percent.
In Europe, London's FTSE 100 was lower by 0.88 percent. France's CAC 40 was down by 0.35 percent, and Germany's DAX Index fell 0.28 percent.