Investors keep off mart

The markets retreated for the fourth consecutive day to their twoweek low led by interest rate sensitive banking sector stocks ahead of the Reserve Bank of India’s monetary policy review meeting as investors are expecting the central bank to focus on currency stability rather than addressing the growthinflation dynamics.

The Sensex after opening the week on a negative note fell 154.91 points or 0.78 per cent to close the day at 19,593.28. The Nifty slid 54.55 points or 0.93 per cent to end the trading session at 5,831.65.

According to market experts, cautious traders were seen unwinding their long positions in the futures and options market ahead of the RBI meet. The weakness in equities was also felt in the currency market. The partially convertible India rupee weakened against the US dollar to close the session at 59.40 as compared to its previ- ous day’s close of 59.04 per dollar.

“The negative closing in the stock markets and outflows to the tune of $ 250 million related to dividend payments by ITC also contributed to the losses in the rupee. There is rising unease among market participants, as the central bank will be reviewing its monetary policy on Tuesday on the back of a series of measures in the last couple of weeks,” observed Abhishek Goenka, CEO, India Forex Advisors.

All over the world thinking in changing. The mandate of a Central Bank must not only be price stability. Its mandate must be seen as part of larger mandate which includes price stability, growth and maximising employment

— P CHIDAMBARAM, Finance minister