Equity markets end on a positive note; all eyes on RBI policy

Taking cues from European markets, Indian equity indices ended Monday's trade on a positive note. After recouping losses in the afternoon trade, while 30-share index Sensex closed at 26,349.10, up 0.45 percent, 50-share index Nifty was up 0.52 percent to close at 8,128.75 points.

Despite trading in the red till afternoon, market indices took cues from European markets which showed a comeback after initial losses and recovered towards the end of the trade.

Asian Paints was the top gainer with a rise of 3.62 percent to close at Rs 937.65. Other major gainers were Hindalco, Lupin, M&M and Yes Bank among others on Monday trade. Tech Mahindra, TCS and HDFC were among the major losers with Tech Mahindra closing at Rs 462.40, down 2.32 percent. Among sectors, IT, capital goods, oil and gas dragged the market with rest supporting the uptrend.

Market participants are in a 'wait and watch' mode as RBI is all set to announce its next policy review on December 7, making it the first review post demonetization announced by the government. While most participants are expecting monetary easing, guidance on liquidity management will be the key to drive market directions, analysts said.

Meanwhile, services sector contracted in November as order flow fell for the first time since June 2015, weighing on investors' sentiments. The Nikkei India Services Purchasing Managers' Index (PMI), a yardstick to gauge services sector activity, stood at 46.7 in November against 54.5 recorded in October. A score below 50 signals contraction in activity.

On Monday trade, the Indian currency closed 0.03 percent higher at 68.21 per dollar.