A benchmark index of the Indian equities markets closed 134.37 points or 0.47 percent down in Monday's trade session.The markets, which traded cautiously throughout the day's session, ended on a negative note ahead of the Reserve Bank of India's (RBI) fifth bi-monthly monetary policy review to be held here Tuesday.Expectations are high of a rate cut by the RBI, as recent economic data showed easing of retail and consumer inflation coupled with a down turn in industrial and gross domestic product (GDP) expansion.
"RBI monetary policy and US November jobs report will be key data points," said Anindya Banerjee, analyst at Kotak Securities.
However, the Geojit BNP Paribas' head - fundamental research, Vinod Nair said the RBI's commentary will be important to understand the possibility to cut rate, if not on Dec 2 but by next policy review. "As we understand RBI is not likely to cut rate but will carry a dovish commentary. It is the requirement of the economy where inflation is likely to lower by crude, commodities and a slowing world. Depending on this event, we will define the momentum in the near term," Nair said.Expectations of a dovish move by the RBI to cut key lending rates led to a healthy buying in interest sensitive stocks like consumer durables, information technology (IT) and automobile stocks.