Markets open on a flat note as investors wait and watch

MUMBAI: The domestic markets opened on a flat note as investors wait and watch for the Monetary Policy Committee's outcome which is expected today. BSE Sensex was 2.75 points down at 62,623.61 whereas 50-share Nifty of NSE was 12 points down to 18,630 at 9.23 am in the morning.

The Reserve Bank of India (RBI) started its bi-monthly policy review with the Monetary Policy Committee (MPC) meeting which started on Monday and will conclude today. The policy outcome will be disclosed today. More than the quantum of rate hikes, domestic investors would watch out for RBI's commentary as it ramps up its efforts to curb inflation and push growth.

On the political front, various exit polls on Monday predicted a big majority for the Bharatiya Janata Party (BJP) in Gujarat and fierce competition prevailed between the parties in Himachal Pradesh. The counting of votes in both states will take place on December 8. The markets will, in some way, also be influenced by the outcome of the polls. The global markets, especially the Asian markets, are all in negative territory. The Nikkei is down 128 points while Hand Seng is down 20.87 as on December 7.

Dow Jones was down 350 points while Nasdaq was trading 225 points in the morning. On Tuesday, the key equity benchmarks back home ended a volatile session with small losses, sliding for the third straight session. The barometer index, the S&P BSE Sensex, fell 208.24 points or 0.33 per cent to 62,626.36.

The Nifty 50 index lost 58.30 points or 0.31 per cent to 18,642.75. According to government data, foreign portfolio investors (FPIs) sold shares worth Rs 635.35 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 558.67 crore in the Indian equity market on December 6, provisional data showed.