India's equity benchmarks inched lower on Monday, dragged by information technology stocks, as investors traded cautiously ahead of an expected US Federal Reserve rate cut at its policy meeting this week, reports Reuters.
The Nifty 50 fell 0.18 per cent to 25,069.20, snapping an eight-session winning streak, its longest in a year. The BSE Sensex dipped 0.15 per cent to 81,785.74.
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The Nifty had risen 1.5 per cent last week, supported by optimism over US-India trade negotiations and government tax cuts aimed at boosting consumption.
"After the recent rebound, slight profit booking or a minor time-wise consolidation cannot be ruled out. However, such dips could offer fresh entry opportunities," said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.
On Monday, nine of the 16 major sectors advanced.
IT, which had climbed 4.3 per cent last week, fell 0.6 per cent and was the biggest drag.
Realty shares gained 2.4 per cent on plans to ease height restrictions on buildings in the north Indian city of Noida and upbeat brokerage commentary.
Asian markets were flat ahead of the Fed meeting on Wednesday, with investors betting on a rate cut that could weaken the dollar and boost flows to emerging markets.
"While liquidity is tightening due to persistent foreign outflows, promoter selling, and a shift to robust initial public offerings, a Fed rate cut and progress in US-India trade talks could quickly spark recovery," said G. Chokkalingam, founder and head of research at Equinomics Research.
Small-cap and mid-cap indexes rose 0.8 per cent and 0.4 per cent, respectively.
Telecom infrastructure firm Railtel Corp surged 6.5 per cent on an order win worth 2.1 billion rupees ($23.81 million).
Defence stocks advanced after India unveiled a new procurement framework for armed forces.
Alcohol beverage companies Radico Khaitan and Allied Blenders rose about 3.8 per cent and 3 per cent respectively, after Jefferies initiated coverage with a "buy" rating.
Rice exporter KRBL tumbled 9.6 per cent after an independent director resigned, citing corporate governance issues.
