New Delhi, Jun 6 (IANS): Though the indices narrowed their losses as the day progressed, domestic equity benchmark indices declined marginally in red on Monday as the three-day monetary policy committee meeting of the RBI began for a macro-economic situation review.

The central bank raising policy rates in the meeting is a "no brainer" as said by its Governor Shaktikanta Das. The investors, however, await the actual degree of percentage hike before taking fresh positions in the markets. Investors also eye other macro economic forward looking guidance from the central bank.

The Sensex on Monday closed at 55,675 points, down 94 points or 0.17 per cent, whereas Nifty closed at 16,570 points, down 15 points or 0.08 per cent.

"The volatility is likely to continue in both global and domestic markets as investors await monetary policy decisions from major central banks, including the RBI," said Vinod Nair, Head of Research at Geojit Financial Services.

"During the afternoon session, markets trimmed their losses and traded in neutral to marginally in green. The markets continued to trade indecisively ahead of RBI's monetary policy meeting this week," said Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers.

Besides, European and Asian stocks rose on Monday after China relaxed some Covid-19 restrictions, calming the markets that have been unsettled by concerns over global central bank rate rises to tackle persistently high inflation, said HDFC Securities in a note.