Sensex snaps four-day rally, Nifty closes down 32 points
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Mumbai: Indian shares snapped four straight sessions of gains to close lower on Thursday, with lenders such as ICICI Bank leading the decline amid growing worries about the impact of demonetisation on economic growth. The broader Nifty ended down 0.38% at 8,192.90, while the benchmark Sensex closed 0.35% lower at 26,559.92.
Data on Thursday showed Indian factory activity decelerated sharply last month as demonetisation led to a rationing of cash and cooled domestic consumption, new orders and production.
Analysts said markets would likely remain flat over the next few sessions as investors await the Reserve Bank of India’s policy decision on Wednesday, amid growing expectations that the central bank will cut rates to help offset the economic impact of demonetisation. “Markets will remain lacklustre for the next few sessions until we get some clarity from the RBI policy meet next week,” said Jayant Manglik, president, retail distribution, Religare Securities.